JPYTRY finds buyers at key support level
Japanese Yen/Turkish Lira (JPYTRY) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
JPYTRY finished Tuesday at 0.05152 losing 29 pips (-0.56%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (JPYTRY as at Apr 16, 2019):
Tuesday's trading range has been 80 pips (1.54%), that's below the last trading month's daily average range of 132 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for JPYTRY. Prices continued to consolidate within a tight trading range between 0.05107 and 0.05206 where it has been caught now for the whole last trading week.
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. The last time this happened on April 4th, JPYTRY actually gained 0.44% on the following trading day. Regardless of a strong opening the currency closed below the prior day's open and close, forming a bearish Engulfing Candle.
After trading down to 0.05126 earlier during the day, JPY/TRY bounced off the key technical support level at 0.05131 (S1). The failure to close below the support could increase that levels significance as support going forward. The FX pair ran into sellers again today around 0.05206 for the third trading day in a row after having found sellers at 0.05203 in the previous session and at 0.05206 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 0.05206 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for JPY/TRY. Out of 140 times, JPYTRY closed higher 53.57% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.14% with an average market move of 0.49%.