NZDJPY pops to highest close since June 10th
New Zealand Dollar/Japanese Yen (NZDJPY) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
NZDJPY finished Thursday at 69.99 gaining 38 pips (0.55%) on low volume. Today's close at 69.99 marks the highest recorded closing price since June 10th. Closing above Wednesday's high at 69.80, the FX pair confirmed its breakout through the prior session high after trading up to 47 pips above it intraday.
Daily Candlestick Chart (NZDJPY as at Jul 02, 2020):
Thursday's trading range has been 76 pips (1.09%), that's below the last trading month's daily average range of 94 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for NZDJPY.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
Buyers managed to take out the key technical resistance level at 69.83 (now S1), which is likely to act as support going forward. The last time this happened on June 4th, NZDJPY gained 1.08% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the four 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 633 times, NZDJPY closed higher 54.03% 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 54.03% with an average market move of 0.17%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.18% and EURUSD closing -0.11% lower. On the flipside the best performers have been NZDUSD closing 0.52% higher and AUDUSD gaining 0.17%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been NZDSGD surging 0.59% and NZDHKD closing 0.51% higher. The worst performers of the day have been USDINR tanking -1.06% and USDMXN closing -0.84% lower. Read more