NZDJPY closes higher for the 2nd day in a row
New Zealand Dollar/Japanese Yen (NZDJPY) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NZDJPY finished the month 4.13% higher at 69.66 after gaining 59 pips (0.85%) today on low volume. Closing above Monday's high at 69.23, the pair confirmed its breakout through the prior session high after trading up to 50 pips above it intraday.
Daily Candlestick Chart (NZDJPY as at Jun 30, 2020):
Tuesday's trading range has been 94 pips (1.36%), that's slightly below the last trading month's daily average range of 98 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for NZDJPY.
One bullish candlestick pattern matches today's price action, the White Candle.
The forex pair managed to close back above the 20-day moving average at 69.49 for the first time since June 23rd. When this moving average was crossed above the last time on June 22nd, NZDJPY actually lost -0.17% on the following trading day. Prices are trading close to the key technical resistance level at 69.83 (R1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for NZD/JPY. Out of 632 times, NZDJPY closed higher 54.11% 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 54.11% with an average market move of 0.17%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.82% and NZDUSD closing 0.53% higher. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more