JPYTRY pushes through key technical resistance level
Japanese Yen/Turkish Lira (JPYTRY) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
JPYTRY finished Thursday at 0.05838 gaining 68 pips (1.18%). Closing above Wednesday's high at 0.05828, the forex pair confirmed its breakout through the prior session high after trading up to 68 pips above it intraday.
Daily Candlestick Chart (JPYTRY as at Mar 26, 2020):
Thursday's trading range has been 132 pips (2.29%), that's slightly below the last trading month's daily average range of 150 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.
Regardless of a weak opening JPY/TRY managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 0.05797 (now S1), which is likely to act as support going forward. The last time this happened on March 16th, JPYTRY actually lost -2.19% on the following trading day. After spiking up to 0.05896 during the day, the currency found resistance at the 20-day moving average at 0.05861.
Though the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might accelerate should prices move below the close-by swing low at 0.05727 where further sell 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 "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for JPY/TRY. Out of 124 times, JPYTRY closed higher 54.03% 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 59.68% with an average market move of 0.87%.