NZDJPY closes within prior day's range
New Zealand Dollar/Japanese Yen (NZDJPY) Technical Analysis Report for Jun 23, 2020 | by Techniquant Editorial Team
NZDJPY ended Tuesday at 69.15 losing 12 pips (-0.17%). Trading 39 pips higher after the open, NZD/JPY was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 19th, NZDJPY actually gained 1.14% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NZDJPY as at Jun 23, 2020):
Tuesday's trading range has been 96 pips (1.39%), that's slightly below the last trading month's daily average range of 104 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NZDJPY. Prices continued to consolidate within a tight trading range between 68.15 and 69.67 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns.
Prices are trading close to the key technical resistance level at 69.83 (R1).
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 might speed up should prices move above the close-by swing high at 70.02 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 68.15 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish High-Wave Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for NZD/JPY. Out of 38 times, NZDJPY closed higher 52.63% 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 63.16% with an average market move of 1.06%.
With five out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are EURUSD gaining 0.42% and GBPUSD closing 0.41% higher. On the flipside the worst performers have been USDJPY closing -0.36% lower and USDCHF losing -0.3%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been EURCAD surging 0.62% and GBPCAD closing 0.62% higher. The worst performers of the day have been USDSEK tanking -0.96% and USDNOK closing -0.76% lower. Read more