JPYGBP pushes through Thursday's high
Japanese Yen/British Pound (JPYGBP) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, JPYGBP ended the week -1.01% lower at 0.007638 after gaining 35 pips (0.46%) today on low volume. Closing above Thursday's high at 0.007621, JPY/GBP confirmed its breakout through the prior session high after trading up to 31 pips above it intraday.
Daily Candlestick Chart (JPYGBP as at May 22, 2020):
Friday's trading range has been 64 pips (0.84%), that's slightly below the last trading month's daily average range of 78 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 slightly higher than usual for JPYGBP.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on May 15th, JPYGBP actually lost -0.96% on the following trading day.
Prices are trading close to the key technical resistance level at 0.007653 (R1). After having been unable to move lower than 0.007579 in the previous session, the currency found buyers again around the same price level today at 0.007588.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for JPY/GBP. Out of 692 times, JPYGBP closed higher 51.88% 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 50.58% with an average market move of 0.05%.