SGDJPY breaks below key technical support level
Singapore Dollar/Japanese Yen (SGDJPY) Technical Analysis Report for Oct 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SGDJPY finished Monday at 77.01 losing 8 pips (-0.1%). Today's close at 77.01 marks the lowest recorded closing price since September 28th. Trading 13 pips higher after the open, the currency was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Friday's low at 77.02, the market confirmed its breakout through the prior session low after trading up to 3 pips below it intraday.
Daily Candlestick Chart (SGDJPY as at Oct 26, 2020):
Monday's trading range has been 23 pips (0.3%), that's below the last trading month's daily average range of 39 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.
Prices broke below the key technical support level at 77.05 (now R1), which is likely to act as resistance going forward. After having been unable to move lower than 77.02 in the previous session, SGD/JPY found buyers again around the same price level today at 76.99. The last time this happened on October 23rd, SGDJPY actually lost -0.10% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 77.35 where further buy stops might get activated. Further selling could move prices lower should the market test September's close-by low at 76.46.
Among the eight 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 348 times, SGDJPY closed higher 58.62% 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 54.60% with an average market move of 0.12%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are EURUSD losing -0.44% and AUDUSD closing -0.22% lower. On the flipside the best performers have been USDCAD closing 0.68% higher and USDCHF gaining 0.38%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDTRY surging 1.54% and EURTRY closing 1.12% higher. The worst performers of the day have been TRYJPY tanking -1.37% and CADHKD closing -0.67% lower. Read more