NZDJPY rises to highest close since June 8th
New Zealand Dollar/Japanese Yen (NZDJPY) Technical Analysis Report for Jul 03, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NZDJPY finished the week 1.99% higher at 70.24 after gaining 25 pips (0.36%) today on low volume. Today's close at 70.24 marks the highest recorded closing price since June 8th. 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 Jul 03, 2020):
Friday's trading range has been 45 pips (0.64%), that's far below the last trading month's daily average range of 90 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for NZDJPY.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on Monday, NZDJPY gained 0.85% on the following trading day.
Prices are trading close to the key technical support level at 69.83 (S1). After having been unable to move above 70.27 in the previous session, the FX pair ran into sellers again around the same price level today, missing to move higher than 70.34.
While 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 "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for NZD/JPY. Out of 330 times, NZDJPY closed higher 54.24% 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 52.73% with an average market move of 0.09%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are NZDUSD gaining 0.35% and AUDUSD closing 0.2% higher. On the flipside the worst performers have been USDCAD closing -0.1% lower and USDCHF losing -0.01%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been EURHUF surging 0.57% and USDHUF closing 0.44% higher. The worst performers of the day have been USDNOK tanking -0.6% and EURNOK closing -0.51% lower. Read more