JPYNZD dominated by bulls lifting the market higher throughout the day
Japanese Yen/New Zealand Dollar (JPYNZD) Technical Analysis Report for Oct 12, 2020 | by Techniquant Editorial Team
JPYNZD finished Monday at 0.014278 gaining 84 pips (0.59%) on low volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (JPYNZD as at Oct 12, 2020):
Monday's trading range has been 108 pips (0.76%), that's below the last trading month's daily average range of 131 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for JPYNZD.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, the FX pair managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 50-day moving average at 0.014253. Prices are trading close to the key technical resistance level at 0.014323 (R1). After having been unable to move lower than 0.014182 in the prior session, the currency found buyers again around the same price level today at 0.014188. The last time this happened on October 8th, JPYNZD actually lost -1.01% on the following trading day.
The pair shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 0.014407 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 0.014182 where further sell stops might get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for JPY/NZD. Out of 315 times, JPYNZD closed higher 55.24% 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 52.06% with an average market move of 0.18%.