NZDJPY closes within previous day's range after lackluster session
New Zealand Dollar/Japanese Yen (NZDJPY) Technical Analysis Report for Jun 25, 2020 | by Techniquant Editorial Team
NZDJPY ended Thursday at 68.92 gaining 31 pips (0.45%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (NZDJPY as at Jun 25, 2020):
Thursday's trading range has been 59 pips (0.86%), that's far 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.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
After having been unable to move lower than 68.42 in the prior session, the FX pair found buyers again around the same price level today at 68.48. The last time this happened on June 19th, NZDJPY gained 1.14% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 69.67 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 68.42 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for NZD/JPY. Out of 715 times, NZDJPY closed higher 54.41% of the time on the next trading day after the market condition occurred.
With five out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are NZDUSD gaining 0.3% and AUDUSD closing 0.28% higher. On the flipside the worst performers have been EURUSD closing -0.29% lower and GBPUSD losing -0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been ZARJPY surging 1.63% and USDHUF closing 0.98% higher. The worst performers of the day have been EURZAR tanking -1.75% and CHFZAR closing -1.52% lower. Read more