ZARJPY pushes through Tuesday's high
South African Rand/Japanese Yen (ZARJPY) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, ZARJPY ended Wednesday at 6.46 gaining 5 pips (0.78%). Today's close at 6.46 marks the highest recorded closing price since July 22nd. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 6.43, the currency confirmed its breakout through the prior session high after trading up to 4 pips above it intraday.
Daily Candlestick Chart (ZARJPY as at Sep 16, 2020):
Wednesday's trading range has been 8 pips (1.25%), that's below the last trading month's daily average range of 11 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ZARJPY.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Unable to break through the key technical resistance level at 6.47 (R1), the pair closed below it after spiking up to 6.47 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on Monday, ZARJPY actually gained 0.94% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Trading close to July's high at 6.55 we might see further upside momentum if potential buy stops at the level get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for ZAR/JPY. Out of 67 times, ZARJPY closed higher 64.18% 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 46.27% with an average market move of 0.19%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.61% and NZDUSD closing 0.27% higher. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and GBPCHF closing 0.75% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more