NZD/JPY Price Analysis: Risk sentiment improves, lifting the NZD/JPY eyes 76.00
|- NZD/JPY is up 0.07% in the early Asian session, eyes 76.00.
- Risk-on market sentiment sees the New Zealand Dollar rise in the session.
- The daily chart shows some upward pressure, however, a break above the 200-DMA could open the path towards 80.00.
At the time of press, the NZD/JPY pair trades at 75.62 up 0.07% in the session. Risk-on market sentiment, prompts investors towards high-yielding assets, to the detriment of the safe-haven currencies, like the Japanese yen and the Swiss franc.
Daily chart
The cross-currency trades inside a descending channel. The price trades in between the trading range of August 19 and March 24 low at 74.55-75.62, respectively. The NZD/JPY is testing resistance. If it’s breached the next level of resistance is the 200-day moving average at 76.46, followed by the confluence of the top of the descending channel, August 10 low, and the 50-DMA around the 76.80-77 range. A break above the descending channel, which usually has bullish implications, could impulse the pair towards the 79.80-80.00 range.
RSI is at 41.39 slightly high, while the Average True Range is 68 pips heading lower.
4-hour chart
Zooming in the NZD/JPY chart, the pair has found resistance in the 75.60-75 range. The pair has failed three times to break higher. Nevertheless, the price has found higher support around 75.50, so as longs as the pair consolidates and sticks to that range, it could mean that price could push higher. If the 75.60-75 range is breached, the NZD/JPY next target could be the confluence of the 61.8% Fibo retracement and the 100 and 200 SMA’s around 76.55-70 range.
On the other hand, if 75.50 fails, the price could target 75.00, followed by the August 19 low, 74.55, and then 74.00
RSI is at 52.51 towards higher readings, while the Average True Range is 30 pips.
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