- The NZD/JPY was observed rallying upward by 0.50% towards 88.70 on Monday.
- Indicators on the daily chart reveal a positive yet limited buying momentum.
- The broader outlook suggests bullish control.
On Monday's session, the NZD/JPY pair traded at 88.72, experiencing a slight 0.52% rally. The daily chart reveals a neutral to bearish outlook, as the bears are taking a breather after a 1.30% plunge last week. In the four-hour chart, momentum has significantly flattened despite earlier gains.
On the daily chart, the Relative Strength Index (RSI) displays a positive slope yet remains in negative territory, an indication that selling pressure has somewhat alleviated but is still in play. Meanwhile, the flat-red histogram of the Moving Average Convergence Divergence (MACD) echoes this hesitation in the bearish momentum. However, the pair's position regarding its Simple Moving Averages (SMAs) reveals mixed signals. The pair holding a position below the 20-day SMA yet remaining above the 100 and 200-day SMAs paints a picture of bulls hibernating on a broader horizon, preparing to gain momentum and seize control from the consolidating bears who, after pushing the pair down by 1.30% in recent sessions, appear to be taking a breather.
Shifting to the four-hour chart, a similar theme of subdued momentum is seen. The key indicators, though having gained significant traction to the upside, turned flat. The four-hour RSI and MACD maintain their positions in positive territory yet remain flat - a scenario suggesting the buying pressure lost steam. Despite the minor pause, the positive positioning of the indicators hints that the dominating force may likely start to lean towards buying momentum in the short term.
Support Levels: 88.260 (100-day SMA), 86.750 (200-day SMA), 86.130.
Resistance Levels: 89.810 (20-day SMA), 90.930, 91.000.
NZD/JPY daily chart
-638385333902538850.png)
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD regains the constructive outlook above the 200-day SMA
AUD/USD advanced strongly for the second session in a row, this time extending the recovery to the upper 0.6500s and shifting its focus to the weekly highs in the 0.6580-0.6585 band, an area coincident with the 100-day SMA.
EUR/USD keeps the bullish performance above 1.0700
The continuation of the sell-off in the Greenback in the wake of the FOMC gathering helped EUR/USD extend its bounce off Wednesday’s lows near 1.0650, advancing past the 1.0700 hurdle ahead of the crucial release of US NFP on Friday.
Gold stuck around $2,300 as market players lack directional conviction
Gold extended its daily slide and dropped below $2,290 in the second half of the day on Thursday. The benchmark 10-year US Treasury bond yield erased its daily losses after US data, causing XAU/USD to stretch lower ahead of Friday's US jobs data.
Bitcoin price rises 5% as BlackRock anticipates a new wave of capital inflows into BTC ETFs from investors
Bitcoin (BTC) price slid to the depths of $56,552 on Wednesday as the cryptocurrency market tried to front run the Federal Open Market Committee (FOMC) meeting. The flash crash saw millions in positions get liquidated.
FOMC in the rear-view mirror – NFP eyed
The update from May’s FOMC rate announcement proved more dovish than expected, which naturally weighed on the US dollar (sending the DXY to lows of 105.44) and US yields, as well as, initially at least, underpinning major US equity indices.