JPYUSD unable to break through key resistance level
Japanese Yen/US Dollar (JPYUSD) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, JPYUSD finished the week -0.11% lower at 0.009085 after losing 18 pips (-0.2%) today. Trading 29 pips higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 0.009093, the forex pair confirmed its breakout through the previous session low after trading up to 18 pips below it intraday.
Daily Candlestick Chart (JPYUSD as at May 17, 2019):
Friday's trading range has been 57 pips (0.63%), that's above the last trading month's daily average range of 46 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for JPYUSD.
After trading down to 0.009075 earlier during the day, the pair bounced off the key technical support level at 0.009078 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on May 10th, JPYUSD gained 0.59% on the following trading day. Unable to break through the key technical resistance level at 0.009115 (R1), JPY/USD closed below it after spiking up to 0.009132 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight 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/USD. Out of 475 times, JPYUSD closed higher 53.26% 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 51.79% with an average market move of 0.09%.