JPYTRY closes within previous day's range
Japanese Yen/Turkish Lira (JPYTRY) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, JPYTRY ended the week 0.56% higher at 0.05519 after gaining 12 pips (0.22%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (JPYTRY as at Feb 14, 2020):
Friday's trading range has been 40 pips (0.73%), that's slightly below the last trading month's daily average range of 46 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for JPYTRY.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 0.05531 (R1). After having been unable to move lower than 0.05488 in the previous session, the FX pair found buyers again around the same price level today at 0.05488. The last time this happened on Wednesday, JPYTRY gained 0.29% on the following trading day.
Although JPY/TRY is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 0.05534 where further buy stops might get activated. With prices trading close to this year's high at 0.05559, upside momentum could accelerate should the currency be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for JPY/TRY. Out of 771 times, JPYTRY closed higher 49.55% 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 59.40% with an average market move of 0.85%.