SGDJPY breaks below key technical support level
Singapore Dollar/Japanese Yen (SGDJPY) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SGDJPY ended Thursday at 76.59 losing 24 pips (-0.31%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SGDJPY as at Mar 26, 2020):
Thursday's trading range has been 72 pips (0.94%), that's far below the last trading month's daily average range of 147 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SGDJPY. Prices continued to consolidate within a tight trading range between 75.35 and 77.18 where it has been caught now for the whole last trading week.
Prices broke below the key technical support level at 76.65 (now R1), which is likely to act as resistance going forward. The last time this happened on February 28th, SGDJPY actually gained 0.45% on the following trading day.
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
As prices are trading close to March's high at 78.17, upside momentum could speed up should the FX pair mark new highs for the month.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for SGD/JPY. Out of 309 times, SGDJPY closed higher 50.49% of the time on the next trading day after the market condition occurred.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more