SGDJPY finds buyers around 76.91 for the third day in a row
Singapore Dollar/Japanese Yen (SGDJPY) Technical Analysis Report for Aug 07, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, SGDJPY finished the week 0.17% higher at 77.17 after gaining 6 pips (0.08%) today on high volume. Trading up to 17 pips lower after the open, the forex pair managed to reverse during the session as bulls took control ending the day above its opening price. 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 Aug 07, 2020):
Friday's trading range has been 31 pips (0.4%), that's below the last trading month's daily average range of 44 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. Prices continued to consolidate within a tight trading range between 76.78 and 77.30 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical resistance level at 77.32 (R1). The pair found buyers again today around 76.91 for the third trading day in a row after having found demand at 76.88 in the previous session and at 76.91 two days ago. The last time this happened on July 21st, SGDJPY gained 0.13% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 77.30 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 76.88 where further sell stops might get activated. Further buying could move prices higher should the market test July's close-by high at 77.60.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for SGD/JPY. Out of 585 times, SGDJPY closed higher 51.62% 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 52.82% with an average market move of 0.05%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are NZDUSD losing -1.33% and AUDUSD closing -1.06% lower. On the flipside the best performers have been USDCAD closing 0.57% higher and USDJPY gaining 0.36%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDZAR surging 1.26% and CHFZAR closing 0.97% higher. The worst performers of the day have been NZDHKD tanking -1.33% and AUDHKD closing -1.08% lower. Read more