SGDJPY surges, gaining 72 pips (0.94%) within a single day on high volume
Singapore Dollar/Japanese Yen (SGDJPY) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
SGDJPY ended the month -0.53% lower at 77.04 after surging 72 pips (0.94%) today on high volume. This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on June 2nd, SGDJPY gained 0.36% on the following trading day. Closing above Thursday's high at 76.50, the forex pair confirmed its breakout through the previous session high after trading up to 71 pips above it intraday.
Daily Candlestick Chart (SGDJPY as at Jul 31, 2020):
Friday's trading range has been 115 pips (1.51%), that's far above the last trading month's daily average range of 42 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 SGDJPY.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Notwithstanding a weak opening the currency managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The pair managed to close back above the 100-day moving average at 76.33.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 77.49 where further buy stops could get activated. As prices are trading close to July's high at 77.60, upside momentum might speed up should the FX pair mark new highs for the month.
Among the 15 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S2" stand out. Its common bullish interpretation has been confirmed for SGD/JPY. Out of 45 times, SGDJPY closed higher 64.44% 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 60.00% with an average market move of 0.27%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are NZDUSD losing -1.04% and AUDUSD closing -0.72% lower. On the flipside the best performers have been USDJPY closing 1.12% higher and USDCHF gaining 0.48%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDZAR surging 1.87% and GBPZAR closing 1.79% higher. The worst performers of the day have been NZDCAD tanking -1.15% and NZDHKD closing -1.05% lower. Read more