JPYUSD pushes through key technical resistance level
Japanese Yen/US Dollar (JPYUSD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, JPYUSD ended Wednesday at 0.009528 gaining 45 pips (0.47%). Today's close at 0.009528 marks the highest recorded closing price since July 30th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 0.009497, the FX pair confirmed its breakout through the previous session high after trading up to 45 pips above it intraday.
Daily Candlestick Chart (JPYUSD as at Sep 16, 2020):
Wednesday's trading range has been 60 pips (0.63%), that's slightly above the last trading month's daily average range of 54 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for JPYUSD.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 0.009515 (now S1), which is likely to act as support going forward. The last time this happened on Monday, JPYUSD gained 0.26% 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 though might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 0.009437.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Trading close to July's high at 0.009598 we might see further upside momentum if potential buy stops at the level get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for JPY/USD. Out of 234 times, JPYUSD closed lower 52.14% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 56.84% with an average market move of -0.36%.