NZD/JPY Price Analysis: Bears intensify their grip, bulls must defend SMAs
|- The NZD/JPY gave up daily gains and trades with losses in the American Session.
- The hourly chart, shows indicators moving towards oversold terrain.
- On the daily chart, indicators stand mostly flat.
In Monday's trading, the NZD/JPY reversed its course and gave up daily gains to decline towards 90.60. Recent movements show an intensification of seller activity as indicators slowly move towards oversold territory while on the daily chart the selling traction somewhat flattened.
On the daily chart, the Relative Strength Index (RSI) fell last week within negative territory and currently stands at around 40.65, mostly flat. This reveals lower momentum from the sellers. This tendency is exalted with the Moving Average Convergence Divergence (MACD) 's flat red bars suggest that negative momentum is consolidating.
NZD/JPY daily chart
Turning attention to the hourly chart, the RSI fell deeper into negative territory while the MACD exhibited rising red bars. However, as short-term indicators seem to be moving towards oversold territory, it could pave the way for a short-term recovery to consolidate losses.
NZD/JPY hourly chart
In conclusion, while indicators appear to have turned flat on the daily chart, the selling momentum intensified in the hourly chart, suggesting that the pair could suffer more pain for the rest of the session. Looking at the broader trend, there are not enough arguments to conclude a bearish outlook as the pair sits above the 100 and 200-day Simple Moving Average (SMA). That being said, the sellers are in control for the immediate short term.
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.