JPYHKD dominated by bulls lifting the market higher throughout the day
Japanese Yen/Hong Kong Dollar (JPYHKD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, JPYHKD ended Wednesday at 0.07386 gaining 38 pips (0.52%). Today's close at 0.07386 marks the highest recorded closing price since July 30th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 0.07358, JPY/HKD confirmed its breakout through the prior session high after trading up to 38 pips above it intraday.
Daily Candlestick Chart (JPYHKD as at Sep 16, 2020):
Wednesday's trading range has been 48 pips (0.65%), that's slightly above the last trading month's daily average range of 42 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for JPYHKD.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 0.07369 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since July 30th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 0.07314 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on July 24th, JPYHKD gained 0.73% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Trading close to July's high at 0.07440 we might see further upside momentum if potential buy stops at the level get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for JPY/HKD. Out of 143 times, JPYHKD closed lower 49.65% 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 62.24% with an average market move of -0.50%.