NZD/JPY Up 16 Pips On 4 Hour Chart, Moves Up For the 4th Day In A Row; Pin Bar Pattern Appearing on Chart

NZD/JPY 4 Hour Price Update

Updated July 21, 2020 09:08 AM GMT (05:08 AM EST)

The choppiness in the recent four-hour candle price action of NZD/JPY continues; to start the current 4 hour candle, it came in at a price of 70.607, up 16 pips (0.23%) since the previous 4 hours. Relative to other instruments in the Forex asset class, NZD/JPY ranked 5th the previous 4 hours in terms of percentage price change.

NZD/JPY End of Day Recap

Updated 00:30 GMT (04:30 EST)

NZD/JPY is up 4 pips (0.06%) since the previous day (opening today near 70.56855072), marking the 4th day in a row an increase has occurred. Out of the 40 instruments in the Forex asset class, NZD/JPY ended up ranking 15th for the day in terms of price change. Here is a price chart of NZD/JPY.

NZD/JPY Technical Analysis

The first thing we should note is that NZD/JPY is now close to its 20 and 50 day averages, located at 70.1238 and 69.3493 respectively, and thus may be at a key juncture along those timeframes. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 20 day average, which is 44.5 pips away. Volatility for NZD/JPY has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. The clearest trend exists on the 30 day timeframe, which shows price moving up over that time. For additional context, note that price has gone up 6 out of the past 10 days. And for candlestick traders, a special treat: there is a pin bar pattern showing up on the charts as well. Rejoice!

The View From Around the Web

Of note is that traders in aggregate have opinions on NZDJPY, with 6 buy signals on our radar and 3 sell signals. This imputes a buy/sell ratio of 2, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a trendline technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

What do you think about such a short trade?…If the price breaks the downtrend line, it will be a strong bullish signal….You can use the information from the post to make your own trading plan for the market.