JPYNZD pushes through Monday's high
Japanese Yen/New Zealand Dollar (JPYNZD) Technical Analysis Report for Jul 14, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, JPYNZD finished Tuesday at 0.014278 gaining 27 pips (0.19%). Closing above Monday's high at 0.014263, the forex pair confirmed its breakout through the prior session high after trading up to 60 pips above it intraday.
Daily Candlestick Chart (JPYNZD as at Jul 14, 2020):
Tuesday's trading range has been 82 pips (0.58%), that's far below the last trading month's daily average range of 134 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.
Unable to break through the key technical resistance level at 0.014320 (R1), the currency closed below it after spiking up to 0.014323 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on June 9th, JPYNZD actually gained 0.23% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 0.014142 where further sell stops might get activated. As prices are trading close to July's high at 0.014438, upside momentum could speed up should the pair mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for JPY/NZD. Out of 74 times, JPYNZD closed lower 63.51% of the time on the next trading day after the market condition occurred.