JPYTRY climbs to highest close ever
Japanese Yen/Turkish Lira (JPYTRY) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
JPYTRY finished Monday at 0.06925 gaining 66 pips (0.96%). Today's close at 0.06925 marks the highest recorded closing price ever. 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 Aug 10, 2020):
Monday's trading range has been 220 pips (3.21%), that's far above the last trading month's daily average range of 114 pips. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for JPYTRY.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern.
After trading down to 0.06817 earlier during the day, the pair bounced off the key technical support level at 0.06835 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on August 3rd, JPYTRY actually lost -0.52% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 0.06558.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for JPY/TRY. Out of 471 times, JPYTRY closed higher 53.29% 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 56.90% with an average market move of 0.64%.