JPYGBP closes higher for the 2nd day in a row
Japanese Yen/British Pound (JPYGBP) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, JPYGBP finished the week -0.58% lower at 0.007410 after gaining 10 pips (0.14%) today. Closing above Thursday's high at 0.007405, the pair confirmed its breakout through the previous session high after trading up to 42 pips above it intraday.
Daily Candlestick Chart (JPYGBP as at Jul 10, 2020):
Friday's trading range has been 52 pips (0.7%), that's below the last trading month's daily average range of 68 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for JPYGBP.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could accelerate should prices move above the close-by swing high at 0.007479 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 0.007357 where further sell stops might get triggered.
Among the four 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 754 times, JPYGBP closed higher 54.24% 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 55.57% with an average market move of 0.19%.