USDJPY pops to highest close since June 8th
US Dollar/Japanese Yen (USDJPY) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, USDJPY finished the month 0.1% higher at 107.93 after gaining 36 pips (0.33%) today. Today's close at 107.93 marks the highest recorded closing price since June 8th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 107.88, the Yen confirmed its breakout through the prior session high after trading up to 11 pips above it intraday.
Daily Candlestick Chart (USDJPY as at Jun 30, 2020):
Tuesday's trading range has been 47 pips (0.44%), that's below the last trading month's daily average range of 68 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.
USD/JPY managed to close above the 20-day moving average at 107.56 for the first time since June 8th. After spiking up to 107.99 during the day, the market found resistance at the 100-day moving average at 107.93. The last time this happened on October 9, 2019, USDJPY actually gained 0.44% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for USD/JPY. Out of 31 times, USDJPY closed higher 54.84% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 64.52% with an average market move of 0.74%.
With three of the other Major FX Pairs closing higher and three closing lower today, the winners of the day are GBPUSD surging 0.82% and NZDUSD gaining 0.53%. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more