USDJPY closes higher for the 3rd day in a row
US Dollar/Japanese Yen (USDJPY) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, USDJPY ended the week 1.41% higher at 108.43 after gaining 48 pips (0.44%) today on high volume. Today's close at 108.43 marks the highest recorded closing price since September 18th. Closing above Thursday's high at 108.02, the Yen confirmed its breakout through the previous session high after trading up to 62 pips above it intraday.
Daily Candlestick Chart (USDJPY as at Oct 11, 2019):
Friday's trading range has been 81 pips (0.75%), that's above the last trading month's daily average range of 67 pips. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower 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 108.42 (now S1), which is likely to act as support going forward. The last time this happened on Wednesday, USDJPY gained 0.44% on the following trading day. Prices are trading close to the key technical resistance level at 108.99 (R1).
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to August's high at 109.32 we could see further upside momentum if potential buy stops at the level get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for USD/JPY. Out of 151 times, USDJPY closed lower 52.32% of the time on the next trading day after the market condition occurred.
With five out of the other six Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 1.67% and AUDUSD closing 0.47% higher. On the flipside the worst performer has been USDCAD closing -0.67% lower. Looking at the Minor FX Pairs and Crosses, the winners of the day have been ZARJPY surging 2.23% and GBPJPY closing 2.1% higher. The worst performers of the day have been CHFZAR tanking -1.88% and USDZAR closing -1.87% lower. Read more