JPYNZD closes above its opening price after recovering from early selling pressure
Japanese Yen/New Zealand Dollar (JPYNZD) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, JPYNZD finished Monday at 0.014251 gaining 24 pips (0.17%). Trading up to 87 pips lower after the open, JPY/NZD managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 9th, JPYNZD gained 0.20% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (JPYNZD as at Jul 13, 2020):
Monday's trading range has been 121 pips (0.85%), that's slightly below the last trading month's daily average range of 143 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for JPYNZD. Prices continued to consolidate within a tight trading range between 0.014140 and 0.014290 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical resistance level at 0.014320 (R1).
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might accelerate should prices move above the close-by swing high at 0.014290 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 0.014140 where further sell stops could get triggered. As prices are trading close to July's high at 0.014438, upside momentum might accelerate should the forex pair mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for JPY/NZD. Out of 361 times, JPYNZD closed lower 57.06% 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 51.80% with an average market move of -0.14%.