ZARJPY still stuck within tight trading range
South African Rand/Japanese Yen (ZARJPY) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
ZARJPY finished the month 1.14% higher at 6.22 after losing 1 pip (-0.16%) today. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ZARJPY as at Jun 30, 2020):
Tuesday's trading range has been 6 pips (0.96%), that's far below the last trading month's daily average range of 13 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ZARJPY. Prices continued to consolidate within a tight trading range between 6.11 and 6.26 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on June 9th, ZARJPY lost 0.00% on the following trading day.
Prices are trading close to the key technical support level at 6.17 (S1). After having been unable to move above 6.25 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 6.24.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might speed up should prices move below the nearby swing low at 6.16 where further sell stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Its common bearish interpretation has been confirmed for ZAR/JPY. Out of 56 times, ZARJPY closed lower 60.71% 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 51.79% with an average market move of -0.39%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.82% and NZDUSD closing 0.53% higher. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the other 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