NZDJPY closes lower for the 2nd day in a row
New Zealand Dollar/Japanese Yen (NZDJPY) Technical Analysis Report for Jun 24, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NZDJPY finished Wednesday at 68.61 losing 54 pips (-0.78%). Closing below Tuesday's low at 68.71, the market confirmed its breakout through the previous session low after trading up to 29 pips below it intraday.
Daily Candlestick Chart (NZDJPY as at Jun 24, 2020):
Wednesday's trading range has been 98 pips (1.42%), that's slightly below the last trading month's daily average range of 105 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NZDJPY.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 68.42 during the day, the forex pair found support at the 200-day moving average at 68.52. NZD/JPY closed back below the 20-day moving average at 69.20. When this moving average was crossed below the last time on June 19th, NZDJPY actually gained 1.14% on the following trading day.
The currency shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the close-by swing low at 68.15 where further sell stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 200" stand out. Its common bullish interpretation has been confirmed for NZD/JPY. Out of 67 times, NZDJPY closed higher 53.73% 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 59.70% with an average market move of 0.27%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are NZDUSD losing -1.26% and AUDUSD closing -0.89% lower. On the flipside the best performers have been USDCAD closing 0.64% higher and USDJPY gaining 0.48%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDMXN surging 1.66% and USDNOK closing 1.57% higher. The worst performers of the day have been NZDHKD tanking -1.25% and NZDSGD closing -1.12% lower. Read more