JPYTRY closes below its opening price unable to hold early session gains
Japanese Yen/Turkish Lira (JPYTRY) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, JPYTRY finished the month 0.38% higher at 0.06349 after losing 24 pips (-0.38%) today. Trading 13 pips higher after the open, the FX pair was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Monday's low at 0.06353, the market confirmed its breakout through the previous session low after trading up to 8 pips below it intraday.
Daily Candlestick Chart (JPYTRY as at Jun 30, 2020):
Tuesday's trading range has been 37 pips (0.58%), that's below the last trading month's daily average range of 85 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.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 0.06345 during the day, JPY/TRY found support at the 20-day moving average at 0.06347. After having been unable to move lower than 0.06353 in the prior session, the currency found buyers again around the same price level today at 0.06345. The last time this happened on June 26th, JPYTRY actually lost -0.33% on the following trading day.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could speed up should prices move above the close-by swing high at 0.06431 where further buy stops might get triggered.
Among the nine 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 786 times, JPYTRY closed higher 50.00% 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 60.56% with an average market move of 0.90%.