USDJPY runs into sellers again around 112.10
US Dollar/Japanese Yen (USDJPY) Technical Analysis Report for Apr 15, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, USDJPY finished Monday at 112.04 edging higher 2 pips (0.02%) on low volume. Today's close at 112.04 marks the highest recorded closing price since December 19, 2018. Trading up to 8 pips lower after the open, the pair managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (USDJPY as at Apr 15, 2019):
Monday's trading range has been 21 pips (0.19%), that's far below the last trading month's daily average range of 55 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.
Prices are trading close to the key technical support level at 111.82 (S1). After having been unable to move above 112.09 in the previous session, USD/JPY ran into sellers again around the same price level today, failing to move higher than 112.10. The last time this happened on April 8th, USDJPY lost -0.30% 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 could accelerate should the market be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for USD/JPY. Out of 152 times, USDJPY closed lower 53.29% 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 USDCAD gaining 0.32% and GBPUSD closing 0.21% higher. None of the markets ended the day in the red. Looking at the Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 0.84% and EURZAR closing 0.68% higher. The worst performers of the day have been ZARJPY tanking -0.62% and USDHUF closing -0.36% lower. Read more