JPYNZD closes higher for the 2nd day in a row
Japanese Yen/New Zealand Dollar (JPYNZD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, JPYNZD finished Wednesday at 0.014154 gaining 28 pips (0.2%). Trading up to 43 pips lower after the open, the forex pair managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (JPYNZD as at Sep 16, 2020):
Wednesday's trading range has been 101 pips (0.71%), that's below the last trading month's daily average range of 137 pips. Weekly volatility is also lower, being below 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 0.014041 and 0.014190 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After spiking up to 0.014184 during the day, the FX pair found resistance at the 20-day moving average at 0.014160. The last time this happened on July 24th, JPYNZD actually gained 0.07% on the following trading day.
While JPY/NZD is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could speed up should prices move below the nearby swing low at 0.014041 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for JPY/NZD. Out of 155 times, JPYNZD closed higher 55.48% 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 56.13% with an average market move of 0.42%.