USDJPY breaks back above 50-day moving average
US Dollar/Japanese Yen (USDJPY) Technical Analysis Report for Dec 05, 2018 | by Techniquant Editorial Team
USDJPY ended Wednesday at 113.19 gaining 41 pips (0.36%) on low volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (USDJPY as at Dec 05, 2018):
Wednesday's trading range has been 59 pips (0.52%), that's slightly above the last trading month's daily average range of 58 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for USDJPY.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The Yen managed to close back above the 50-day moving average at 113.10. Prices are trading close to the key technical resistance level at 113.39 (R1). After having been unable to move lower than 112.58 in the prior session, USD/JPY found buyers again around the same price level today at 112.65. The last time this happened on Monday, USDJPY actually lost -0.77% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further selling might move prices lower should the market test November's close-by low at 112.31.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for USD/JPY. Out of 341 times, USDJPY closed lower 52.79% of the time on the next trading day after the market condition occurred.
With three out of the other six Major FX Pairs closing higher today, the ones that stand out on the positive side are USDCAD gaining 0.68% and GBPUSD closing 0.15% higher. On the flipside the worst performers have been AUDUSD closing -0.94% lower and NZDUSD losing -0.43%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been TRYJPY surging 1.53% and GBPAUD closing 1.06% higher. The worst performers of the day have been USDTRY tanking -1.14% and EURTRY closing -1.12% lower. Read more