JPYSGD tumbles, losing 123 pips (-0.94%) within a single day on high volume


Japanese Yen/Singapore Dollar (JPYSGD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team

Highlights

JPYSGD crashes, losing 123 pips (-0.94%) within a single day on high volume
JPYSGD breaks back below 50-day moving average
JPYSGD breaks below Thursday's low

Overview

JPYSGD finished the month 0.53% higher at 0.012980 after tanking 123 pips (-0.94%) today on high volume. This is the biggest single-day loss in over a month. The last time we've seen such an unusually strong single-day loss on June 2nd, JPYSGD lost -0.36% on the following trading day. Closing below Thursday's low at 0.013072, the FX pair confirmed its breakout through the previous session low after trading up to 120 pips below it intraday.

Daily Candlestick Chart (JPYSGD as at Jul 31, 2020):

Daily technical analysis candlestick chart for Japanese Yen/Singapore Dollar (JPYSGD) as at Jul 31, 2020

Friday's trading range has been 196 pips (1.5%), that's far above the last trading month's daily average range of 72 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for JPYSGD.

In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Despite a strong opening the currency closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.

The pair closed back below the 50-day moving average at 0.012995 for the first time since July 23rd.

The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.

Selling could accelerate should prices move below the close-by swing low at 0.012905 where further sell stops might get activated. As prices are trading close to July's low at 0.012887, downside momentum could speed up should the forex pair mark new lows for the month.

Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for JPY/SGD. Out of 200 times, JPYSGD closed higher 53.50% of the time on the next trading day after the market condition occurred.


Market Conditions for JPYSGD as at Jul 31, 2020

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