NZDJPY breaks above 20-day moving average for the first time since February 21st
New Zealand Dollar/Japanese Yen (NZDJPY) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, NZDJPY finished Thursday at 65.34 gaining 28 pips (0.43%). Trading up to 119 pips lower after the open, the FX pair managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, NZDJPY gained 1.87% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NZDJPY as at Mar 26, 2020):
Thursday's trading range has been 160 pips (2.46%), that's slightly below the last trading month's daily average range of 215 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NZDJPY.
One bearish candlestick pattern matches today's price action, the Hanging Man.
NZD/JPY managed to close above the 20-day moving average at 65.28 for the first time since February 21st. Prices are trading close to the key technical resistance level at 66.57 (R1).
While the pair is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 65.92 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for NZD/JPY. Out of 144 times, NZDJPY closed higher 53.47% 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 seven trading days, showing a win rate of 52.08% with an average market move of 0.03%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more