JPYNZD stuck within tight trading range
Japanese Yen/New Zealand Dollar (JPYNZD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, JPYNZD ended the week -3.21% lower at 0.015235 after gaining 54 pips (0.36%) today. Closing above Thursday's high at 0.015216, the market confirmed its breakout through the previous session high after trading up to 77 pips above it intraday.
Daily Candlestick Chart (JPYNZD as at May 22, 2020):
Friday's trading range has been 135 pips (0.89%), that's below the last trading month's daily average range of 215 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for JPYNZD. Prices continued to consolidate within a tight trading range between 0.015094 and 0.015314 where it has been caught now for the last three trading days.
Prices are trading close to the key technical resistance level at 0.015380 (R1).
Though 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 accelerate should prices move below the close-by swing low at 0.015094 where further sell stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for JPY/NZD. Out of 312 times, JPYNZD closed lower 50.64% of the time on the next trading day after the market condition occurred.