USDJPY pushes through key technical resistance level
US Dollar/Japanese Yen (USDJPY) Technical Analysis Report for Apr 12, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, USDJPY ended the week 0.27% higher at 112.02 after gaining 36 pips (0.32%) today. Today's close at 112.02 marks the highest recorded closing price since December 19, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 111.69, the pair confirmed its breakout through the prior session high after trading up to 40 pips above it intraday.
Daily Candlestick Chart (USDJPY as at Apr 12, 2019):
Friday's trading range has been 50 pips (0.45%), that's slightly below the last trading month's daily average range of 56 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for USDJPY.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 111.82 (now S1), which is likely to act as support going forward. The last time this happened on March 26th, USDJPY actually lost -0.11% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
With prices trading close to this year's high at 112.14, upside momentum might speed up should the Yen be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for USD/JPY. Out of 325 times, USDJPY closed lower 52.92% of the time on the next trading day after the market condition occurred.
With four out of the other six Major FX Pairs closing higher today, the ones that stand out on the positive side are AUDUSD gaining 0.69% and NZDUSD closing 0.52% higher. On the flipside the worst performers have been USDCAD closing -0.43% lower and USDCHF losing -0.07%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been EURTRY surging 1.1% and AUDJPY closing 1.02% higher. The worst performers of the day have been USDHUF tanking -0.62% and GBPAUD closing -0.57% lower. Read more