JPYGBP breaks below Monday's low
Japanese Yen/British Pound (JPYGBP) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, JPYGBP ended the month -0.51% lower at 0.007471 after tanking 87 pips (-1.15%) today on low volume. This is the biggest single-day loss in over four weeks. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 0.007536, the currency confirmed its breakout through the previous session low after trading up to 67 pips below it intraday.
Daily Candlestick Chart (JPYGBP as at Jun 30, 2020):
Tuesday's trading range has been 105 pips (1.39%), that's above the last trading month's daily average range of 87 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for JPYGBP.
One bearish candlestick pattern matches today's price action, the Black Candle.
The market closed back below the 50-day moving average at 0.007502 for the first time since June 17th. When this moving average was crossed below the last time on May 29th, JPYGBP lost -0.88% on the following trading day. JPY/GBP ran into sellers again today around 0.007574 for the third trading day in a row after having found sellers at 0.007578 in the prior session and at 0.007573 two days ago.
The FX pair shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling might speed up should prices move below the nearby swing low at 0.007463 where further sell stops could get triggered.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. Its common bearish interpretation has been confirmed for JPY/GBP. Out of 91 times, JPYGBP closed lower 60.44% 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 57.14% with an average market move of -0.12%.