JPYNZD closes within prior day's range
Japanese Yen/New Zealand Dollar (JPYNZD) Technical Analysis Report for Oct 13, 2020 | by Techniquant Editorial Team
JPYNZD ended Tuesday at 0.014255 losing 23 pips (-0.16%). Trading 47 pips higher after the open, the currency was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (JPYNZD as at Oct 13, 2020):
Tuesday's trading range has been 112 pips (0.78%), that's slightly 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.
Two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Bearish Spinning Top which are both known as bearish patterns. The last time a Bearish Hikkake Pattern showed up on September 8th, JPYNZD lost -1.12% on the following trading day.
After trading down to 0.014213 earlier during the day, the market bounced off the key technical support level at 0.014213 (S1). The failure to close below the support might increase that levels importance as support going forward. After spiking up to 0.014325 during the day, the forex pair found resistance at the 100-day moving average at 0.014302.
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 0.014182 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Its common bearish interpretation has been confirmed for JPY/NZD. Out of 251 times, JPYNZD closed lower 55.78% 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 58.17% with an average market move of -0.22%.