NZDJPY closes higher for the 3rd day in a row
New Zealand Dollar/Japanese Yen (NZDJPY) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NZDJPY finished Monday at 67.71 gaining 81 pips (1.21%). Today's close at 67.71 marks the highest recorded closing price since March 4th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 67.01, the currency confirmed its breakout through the previous session high after trading up to 77 pips above it intraday.
Daily Candlestick Chart (NZDJPY as at Jun 01, 2020):
Monday's trading range has been 115 pips (1.72%), that's above the last trading month's daily average range of 87 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NZDJPY.
One bullish candlestick pattern matches today's price action, the White Candle.
The FX pair managed to close above the 100-day moving average at 67.12 for the first time since February 21st. When this moving average was crossed above the last time on February 19th, NZDJPY actually lost -0.15% on the following trading day.
Crossing above the upper Bollinger Band for the first time since May 26th, 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 65.47 or signal the beginning of a strong momentum breakout leading to even higher prices.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for NZD/JPY. Out of 144 times, NZDJPY closed higher 56.25% 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 57.64% with an average market move of 0.39%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are AUDUSD gaining 1.93% and NZDUSD closing 1.43% higher. On the flipside the worst performers have been USDCAD closing -1.43% lower and USDJPY losing -0.21%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been AUDHKD surging 1.93% and AUDCHF closing 1.9% higher. The worst performers of the day have been EURAUD tanking -1.65% and USDPLN closing -1.36% lower. Read more