NZD/JPY Price Analysis: Soars above the 81.00 mark though stalls near 81.70s
|- The NZD/JPY is barely unchanged as the Asian session begins, though up 2.29% in the week.
- NZD/JPY Price Forecast: The pair is upwards, though RSI at overbought levels suggesting a correction is on the cards.
NZD/JPY is subdued around 81.60 early in the Asian Pacific session on Friday, after rising for three consecutive days, so far in the week, reaching a YTD high around 81.73, the highest level since November 2021.
Overnight, the NZD/JPY pair braced to the 81.00 area, though later it reached a daily high near 81.44, subsequently followed by a drop around 81.00, a solid demand area, which pushed the pair towards 81.73 year-to-date high.
NZD/JPY Price Forecast: Technical outlook
The NZD/JPY remains upward biased, despite being a barometer for risk sentiment trades. Daily moving averages (DMAs), although almost horizontal, begin to aim higher, led by the 50-DMA at 77.66, which is about to cross over the 200-DMA at 77.92, forming a golden cross a signal of bullish strength.
However, the Relative Strenght Index (RSI), a momentum oscillator, sits near the 80 reading in the overbought zone, meaning a reversion move is on the cards, so the pair might correct lower before resuming the ongoing uptrend.
If that scenario plays out, the NZD/JPY first support level would be the 81.00 mark, followed by the March 14 daily high previous resistance-now-support at 80.26.
Upwards, the NZD/JPY first resistance would be 82.00. Breach of the latter would expose the 2021 yearly high at 82.50, followed by the 83.00 mark.
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