SGDJPY closes below its opening price unable to hold early session gains
Singapore Dollar/Japanese Yen (SGDJPY) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SGDJPY ended the week -1.1% lower at 80.86 after losing 17 pips (-0.21%) today. Trading 20 pips higher after the open, the pair was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SGDJPY as at Jan 24, 2020):
Friday's trading range has been 50 pips (0.62%), that's slightly above the last trading month's daily average range of 44 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SGDJPY.
After trading down to 80.73 earlier during the day, the market bounced off the key technical support level at 80.85 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move lower than 80.79 in the prior session, the forex pair found buyers again around the same price level today at 80.73. The last time this happened on Wednesday, SGDJPY actually lost -0.50% on the following trading day.
Though the FX pair is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
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 SGD/JPY. Out of 602 times, SGDJPY closed higher 57.81% 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 56.48% with an average market move of 0.16%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.41% and AUDUSD closing -0.34% lower. On the flipside the best performers have been USDCHF closing 0.23% higher and USDCAD gaining 0.14%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDNOK surging 0.57% and USDPLN closing 0.53% higher. The worst performers of the day have been GBPJPY tanking -0.6% and AUDJPY closing -0.53% lower. Read more