JPYSGD closes higher for the 2nd day in a row
Japanese Yen/Singapore Dollar (JPYSGD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, JPYSGD finished Thursday at 0.013057 gaining 41 pips (0.31%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (JPYSGD as at Mar 26, 2020):
Thursday's trading range has been 123 pips (0.94%), that's far below the last trading month's daily average range of 255 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 JPYSGD. Prices continued to consolidate within a tight trading range between 0.012957 and 0.013271 where it has been caught now for the whole last trading week.
Buyers managed to take out the key technical resistance level at 0.013046 (now S1), which is likely to act as support going forward. The last time this happened on February 28th, JPYSGD actually lost -0.45% on the following trading day.
While the currency is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to March's low at 0.012793, downside momentum could speed up should the forex pair mark new lows for the month.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for JPY/SGD. Out of 328 times, JPYSGD closed lower 50.61% of the time on the next trading day after the market condition occurred.