JPYZAR climbs to highest close since June 24th
Japanese Yen/South African Rand (JPYZAR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, JPYZAR finished the month 0.31% higher at 0.1613 after gaining 13 pips (0.81%) today. Today's close at 0.1613 marks the highest recorded closing price since June 24th.
Daily Candlestick Chart (JPYZAR as at Jul 31, 2020):
Friday's trading range has been 31 pips (1.94%), that's far above the last trading month's daily average range of 24 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for JPYZAR.
Prices are trading close to the key technical resistance level at 0.1626 (R1).
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 0.1569.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Further buying could move prices higher should the market test June's nearby high at 0.1639.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for JPY/ZAR. Out of 66 times, JPYZAR closed lower 54.55% 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 four trading days, showing a win rate of 50.00% with an average market move of -0.21%.