JPYNZD rises to highest close since August 24th
Japanese Yen/New Zealand Dollar (JPYNZD) Technical Analysis Report for Sep 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, JPYNZD finished Tuesday at 0.014372 gaining 39 pips (0.27%). Today's close at 0.014372 marks the highest recorded closing price since August 24th. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (JPYNZD as at Sep 22, 2020):
Tuesday's trading range has been 89 pips (0.62%), that's far below the last trading month's daily average range of 143 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 lower than usual for JPYNZD.
Prices are trading close to the key technical support level at 0.014290 (S1). After having been unable to move above 0.014376 in the prior session, the FX pair ran into sellers again around the same price level today, failing to move higher than 0.014395. The last time this happened on September 15th, JPYNZD actually gained 0.20% on the following trading day.
Crossing above the upper Bollinger Band for the first time since August 20th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 0.014123 or signal the beginning of a strong momentum breakout leading to even higher prices.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying might move prices higher should the market test August's nearby high at 0.014543.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for JPY/NZD. Out of 110 times, JPYNZD closed higher 55.45% 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 53.64% with an average market move of 0.22%.