JPYNZD closes below its opening price unable to hold early session gains
Japanese Yen/New Zealand Dollar (JPYNZD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, JPYNZD finished Thursday at 0.015305 losing 65 pips (-0.42%). Trading 287 pips higher after the open, the currency was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Monday, JPYNZD lost -1.83% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (JPYNZD as at Mar 26, 2020):
Thursday's trading range has been 383 pips (2.49%), that's slightly below the last trading month's daily average range of 517 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for JPYNZD.
Prices are trading close to the key technical support level at 0.015022 (S1). The pair closed below the 20-day moving average at 0.015328 for the first time since February 21st.
Although the forex pair is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the close-by swing low at 0.015170 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for JPY/NZD. Out of 581 times, JPYNZD closed lower 54.73% 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 five trading days, showing a win rate of 52.50% with an average market move of -0.04%.