USDJPY pushes through key technical resistance level
US Dollar/Japanese Yen (USDJPY) Technical Analysis Report for Feb 11, 2019 | by Techniquant Editorial Team
USDJPY ended Monday at 110.38 surging 63 pips (0.57%) on low volume. Today's close at 110.38 marks the highest recorded closing price since December 27, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 109.90, the FX pair confirmed its breakout through the prior session high after trading up to 57 pips above it intraday.
Daily Candlestick Chart (USDJPY as at Feb 11, 2019):
Monday's trading range has been 71 pips (0.65%), that's 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 notably lower than usual for USDJPY.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 110.00 (now S1), which is likely to act as support going forward. The last time this happened on January 15th, USDJPY gained 0.36% on the following trading day.
Crossing above the upper Bollinger Band for the first time since November 8, 2018, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 109.53 or signal the beginning of a strong momentum breakout leading to even higher prices.
While the Yen is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for USD/JPY. Out of 340 times, USDJPY closed lower 52.35% of the time on the next trading day after the market condition occurred.
With four out of the other six Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.63% and EURUSD closing -0.41% lower. On the flipside the best performers have been USDCHF closing 0.37% higher and USDCAD gaining 0.18%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been USDZAR surging 1.38% and USDMXN closing 1.17% higher. The worst performers of the day have been ZARJPY tanking -0.74% and GBPHKD closing -0.63% lower. Read more