JPYNZD pops to highest close since September 28th
Japanese Yen/New Zealand Dollar (JPYNZD) Technical Analysis Report for Oct 20, 2020 | by Techniquant Editorial Team
JPYNZD finished Tuesday at 0.014403 gaining 48 pips (0.33%). Today's close at 0.014403 marks the highest recorded closing price since September 28th. Closing above Monday's high at 0.014376, the pair confirmed its breakout through the prior session high after trading up to 64 pips above it intraday.
Daily Candlestick Chart (JPYNZD as at Oct 20, 2020):
Tuesday's trading range has been 93 pips (0.65%), that's below the last trading month's daily average range of 121 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 Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on September 7th, JPYNZD gained 1.34% on the following trading day.
After trading down to 0.014347 earlier during the day, the forex pair bounced off the key technical support level at 0.014347 (S1). The failure to close below the support might increase that levels importance as support going forward.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 0.014447 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 0.014282 where further sell stops might get activated. Further buying could move prices higher should the market test September's nearby high at 0.014569.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for JPY/NZD. Out of 52 times, JPYNZD closed higher 55.77% 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 51.92% with an average market move of 0.22%.