JPYHKD closes above its opening price after recovering from early selling pressure
Japanese Yen/Hong Kong Dollar (JPYHKD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, JPYHKD ended the week unchanged at 0.07077 after gaining 5 pips (0.07%) today on low volume. Trading up to 5 pips lower after the open, JPY/HKD managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 29th, JPYHKD lost 0.00% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (JPYHKD as at Feb 14, 2020):
Friday's trading range has been 15 pips (0.21%), that's below the last trading month's daily average range of 28 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for JPYHKD. Prices continued to consolidate within a tight trading range between 0.07052 and 0.07087 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 0.07087 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 0.07087 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 0.07052 where further sell stops could get activated. With prices trading close to this year's low at 0.07047, downside momentum might speed up should the forex pair break out to new lows for the year.
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. Although it is usually interpreted as neutral, it has actually shown to be bullish for JPY/HKD. Out of 742 times, JPYHKD closed higher 50.00% of the time on the next trading day after the market condition occurred.