JPYUSD finds buyers at key support level
Japanese Yen/US Dollar (JPYUSD) Technical Analysis Report for Aug 03, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, JPYUSD ended Monday at 0.009438 edging lower 5 pips (-0.05%) on high volume. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (JPYUSD as at Aug 03, 2020):
Monday's trading range has been 79 pips (0.84%), that's above the last trading month's daily average range of 60 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for JPYUSD.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 0.009392 earlier during the day, the forex pair bounced off the key technical support level at 0.009428 (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 July 20th, JPYUSD gained 0.44% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the three 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 451 times, JPYUSD closed higher 52.55% 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 50.78% with an average market move of 0.07%.