NZD/JPY clears daily gains as bullish momentum wanes
|- NZD/JPY met resistance at a daily high of around 89.863 and then declined towards 89.245.
- Indicators turned flat in positive territory on the daily chart.
- The cross is still bullish in the long term as it trades above the 20, 100 and 200-day SMAs.
The NZD/JPY failed to hold its momentum, which took the cross to a multi-week high of around 89.865 and then closed at around 89.200.
The technical analysis of the daily chart suggests a shift towards a neutral to a bearish outlook for NZD/USD, with indicators flashing signs of bullish exhaustion. The Relative Strength Index (RSI) maintains a flat slope above 50, while the Moving Average Convergence (MACD) presents lower green bars. On the four-hour chart, the bearish momentum is more evident, with the RSI and MACD plunging into the negative zone.
That said, the pair is above the 20,100,200-day Simple Moving Average (SMA), indicating a favourable position for the bulls in the bigger picture. In addition, the 100-day SMA seems to be converging towards the 20-day average to perform a bullish cross in the 88.150-88.300 area, which could reignite the momentum for the buyers in the short term.
Support levels: 89.000, 88.700,88.500.
Resistance levels: 89.500, 89.850, 90.000.
NZD/USD Daily Chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.