JPYGBP closes lower for the 3rd day in a row
Japanese Yen/British Pound (JPYGBP) Technical Analysis Report for Aug 12, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, JPYGBP finished Wednesday at 0.007179 losing 18 pips (-0.25%). Today's close at 0.007179 marks the lowest recorded closing price since February 27th. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (JPYGBP as at Aug 12, 2020):
Wednesday's trading range has been 38 pips (0.53%), that's below the last trading month's daily average range of 56 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for JPYGBP.
Prices broke below the key technical support level at 0.007182 (now R1), which is likely to act as resistance going forward. After having been unable to move lower than 0.007168 in the prior session, the pair found buyers again around the same price level today at 0.007162. The last time this happened on August 5th, JPYGBP actually lost -0.17% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Trading close to June's low at 0.007156 we could see further downside momentum if potential sell stops at the level get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Its common bearish interpretation has been confirmed for JPY/GBP. Out of 315 times, JPYGBP closed lower 51.75% 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 53.97% with an average market move of 0.01%.