JPYGBP finds buyers again around 0.006973
Japanese Yen/British Pound (JPYGBP) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
JPYGBP ended the week -1.26% lower at 0.006982 after flat today on low volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (JPYGBP as at Feb 14, 2020):
Friday's trading range has been 31 pips (0.44%), that's far below the last trading month's daily average range of 53 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for JPYGBP.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji.
Prices are trading close to the key technical support level at 0.006972 (S1). After having been unable to move lower than 0.006970 in the prior session, the currency found buyers again around the same price level today at 0.006973. The last time this happened on February 3rd, JPYGBP actually lost -1.03% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 0.007035 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 0.006970 where further sell stops could get triggered. With prices trading close to this year's low at 0.006915, downside momentum might speed up should the pair break out to new lows for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for JPY/GBP. Out of 741 times, JPYGBP closed higher 53.71% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 54.79% with an average market move of 0.15%.