SGDJPY snaps to lowest close since August 21st
Singapore Dollar/Japanese Yen (SGDJPY) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, SGDJPY finished Wednesday at 77.25 losing 22 pips (-0.28%). Today's close at 77.25 marks the lowest recorded closing price since August 21st. Closing below Tuesday's low at 77.37, the forex pair confirmed its breakout through the previous session low after trading up to 19 pips below it intraday.
Daily Candlestick Chart (SGDJPY as at Sep 16, 2020):
Wednesday's trading range has been 37 pips (0.48%), that's slightly below the last trading month's daily average range of 43 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SGDJPY.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on September 10th, SGDJPY actually gained 0.15% on the following trading day.
The currency closed below the 50-day moving average at 77.30 for the first time since August 4th.
While the FX pair is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the close-by swing low at 77.14 where further sell stops could get activated. Further selling might move prices lower should the market test August's nearby low at 76.78.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for SGD/JPY. Out of 345 times, SGDJPY closed higher 58.84% 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 54.20% with an average market move of 0.12%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.61% and NZDUSD closing 0.27% higher. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more