JPYSGD closes higher for the 2nd day in a row
Japanese Yen/Singapore Dollar (JPYSGD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, JPYSGD finished the week 0.19% higher at 0.012682 after gaining 32 pips (0.25%) today on low volume. Today's close at 0.012682 marks the highest recorded closing price since October 10, 2019. Closing above Thursday's high at 0.012669, the market confirmed its breakout through the previous session high after trading up to 26 pips above it intraday.
Daily Candlestick Chart (JPYSGD as at Feb 14, 2020):
Friday's trading range has been 59 pips (0.47%), that's below the last trading month's daily average range of 78 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for JPYSGD.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 0.012636 earlier during the day, the currency bounced off the key technical support level at 0.012647 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on January 8th, JPYSGD actually lost -0.33% on the following trading day. Prices are trading close to the key technical resistance level at 0.012703 (R1).
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 0.012703 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for JPY/SGD. Out of 477 times, JPYSGD closed lower 56.39% 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 54.51% with an average market move of -0.07%.