NZDJPY Down 0 Pips On Hourly Chart; Nears 20 Day Moving Average

Hourly Update

(Last Updated September 15, 2020 23:18 GMT)

At the time of this writing, NZDJPY’s rate is down -30 pips (0%) from the hour prior. NZDJPY has seen its price go down 8 out of the past 10 hours, thus creating some compelling opportunities for bears. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 20 hour timeframe. Price action traders may also wish to note that we see a doji candlestick pattern on NZDJPY. Given that we see downtrend on the 20 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. Of note is that the 20 and 50 hour changed directions on NZDJPY; they are now pointing down. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

NZDJPY End of Day Recap

Updated 00:30 GMT (04:30 EST)

The choppiness in the recent daily price action of NZDJPY continues; to start today, it came in at a price of 70.752, up 19 pips (0.26%) since yesterday. Out of the 40 instruments in the Forex asset class, NZDJPY ended up ranking 8th for the day in terms of price change. Let’s take a look at price chart of NZDJPY.

NZDJPY

NZDJPY Technical Analysis

Notably, NZDJPY is now close to its 20 and 50 day averages, located at 70.4233 and 70.3286 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 32.9 pips away. Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving up. For additional context, note that price has gone up 16 out of the past 30 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on NZDJPY, with 8 buy signals on our radar and 11 sell signals. This imputes a buy/sell ratio of 0.73, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a fibonacci technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

”SELL MARKET ORDER”Why sell? Butterfly Fibonacci cluster Bearish hidden divergence Cluster consisting of: 1.272 ext. 0.236 ret. 1.00 projection Stops: 2 pips above the 1.272 extension at 71.276TP1: 70.5TP2: 70Good luck to those following and everyone else trading NZD/JPY!


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram