USDJPY finds buyers again around 109.15
US Dollar/Japanese Yen (USDJPY) Technical Analysis Report for May 15, 2019 | by Techniquant Editorial Team
USDJPY ended Wednesday at 109.59 edging lower 2 pips (-0.02%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (USDJPY as at May 15, 2019):
Wednesday's trading range has been 55 pips (0.5%), that's slightly above the last trading month's daily average range of 52 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 higher than usual for USDJPY.
Three candlestick patterns are matching today's price action, the Takuri Line and the Tweezer Bottom which are both known as bullish patterns and one bearish pattern, the Bearish Spinning Top. The last time a Takuri Line showed up on March 21st, USDJPY actually lost -0.79% on the following trading day.
After trading down to 109.15 earlier during the day, the market bounced off the key technical support level at 109.56 (S1). The failure to close below the support might increase that levels importance as support going forward. Prices are trading close to the key technical resistance level at 110.00 (R1). After having been unable to move lower than 109.15 in the prior session, the pair found buyers again around the same price level today at 109.15.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Tweezer Bottom" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for USD/JPY. Out of 16 times, USDJPY closed lower 62.50% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 62.50% with an average market move of -0.41%.
With five out of the other six Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.49% and AUDUSD closing -0.23% lower. None of the markets managed to end the day in the green. Looking at the Minor FX Pairs and Crosses, the winners of the day have been TRYJPY surging 0.5% and EURGBP closing 0.46% higher. The worst performers of the day have been GBPCAD tanking -0.67% and GBPPLN closing -0.67% lower. Read more