SGDJPY falls to lowest close since October 10, 2019
Singapore Dollar/Japanese Yen (SGDJPY) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SGDJPY finished the week -0.19% lower at 78.85 after losing 20 pips (-0.25%) today on low volume. Today's close at 78.85 marks the lowest recorded closing price since October 10, 2019. Closing below Thursday's low at 78.93, the currency confirmed its breakout through the previous session low after trading up to 16 pips below it intraday.
Daily Candlestick Chart (SGDJPY as at Feb 14, 2020):
Friday's trading range has been 37 pips (0.47%), that's below the last trading month's daily average range of 50 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SGDJPY.
One bearish candlestick pattern matches today's price action, the Black Candle.
Unable to break through the key technical resistance level at 79.07 (R1), the market closed below it after spiking up to 79.14 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on February 7th, SGDJPY lost 0.00% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might speed up should prices move below the close-by swing low at 78.72 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for SGD/JPY. Out of 481 times, SGDJPY closed higher 56.34% 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 54.89% with an average market move of 0.11%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more