JPYGBP breaks below Wednesday's low
Japanese Yen/British Pound (JPYGBP) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, JPYGBP finished Thursday at 0.007477 losing 95 pips (-1.25%). Trading 87 pips higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Wednesday's low at 0.007496, the currency confirmed its breakout through the prior session low after trading up to 24 pips below it intraday.
Daily Candlestick Chart (JPYGBP as at Mar 26, 2020):
Thursday's trading range has been 187 pips (2.47%), that's slightly below the last trading month's daily average range of 187 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for JPYGBP.
One bearish candlestick pattern matches today's price action, the Black Candle.
The FX pair closed below the 20-day moving average at 0.007519 for the first time since February 25th. After having been unable to move lower than 0.007496 in the previous session, the forex pair found buyers again around the same price level today at 0.007472. The last time this happened on March 13th, JPYGBP gained 1.93% on the following trading day.
While the pair is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Its common bearish interpretation has been confirmed for JPY/GBP. Out of 583 times, JPYGBP closed lower 54.55% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 53.52% with an average market move of -0.09%.