NZD/JPY bears gain traction on fundamental catalyst, oversold conditions on the four-hour charts

NZD/JPY experienced a 1.60% downslope, consolidating at 88.90 after falling to 87.70.
Hawkish bets on the BoJ and speculations of a liftoff are responsible for the strength of the JPY.
The daily chart reveals a negative RSI slope and increasing red MACD Bars, suggesting a strong bearish momentum.

Patricio Martín FXStreet

In Thursday's session, the NZD/JPY pair is trading bearish at around 88.90 after hitting a low of around 87.70. As indicated by the daily and four-hour charts, bears are currently dominating with their strength becoming more evident in shorter time frames.

In that sense, the Relative Strength Index (RSI) suggests that selling pressure is dominant given its negative trajectory currently within a negative range, while the Increasing red bars on the Moving Average Convergence Divergence (MACD) also indicate that the bearish momentum might be picking up speed.

Concerning Simple Moving Averages (SMAs), the pair lies below the 20-day average but above the 100-day and 200-day SMAs. This indicates that in the short term, there is bearish pressure but that in the larger time frame, bulls are still in command.

Switching the focus to the smaller timeframes, the four-hour chart also implies that the sellers are building force. The Relative Strength Index (RSI) shows an oversold condition but is currently flat, while the MACD is demonstrating rising red bars, adding more weight to the bearish viewpoint.

Support Levels: 88.55, 88.15 (100-day SMA), 87.70.
Resistance Levels: 89.25, 89.80, 90.00 (20-day SMA).

NZD/JPY daily chart

NZD/JPY

Overview
Today last price	88.91
Today Daily Change	-1.52
Today Daily Change %	-1.68
Today daily open	90.43

Trends
Daily SMA20	90.25
Daily SMA50	89.18
Daily SMA100	88.15
Daily SMA200	86.55

Levels
Previous Daily High	90.9
Previous Daily Low	90.15
Previous Weekly High	91.52
Previous Weekly Low	90.23
Previous Monthly High	91.38
Previous Monthly Low	87.56
Daily Fibonacci 38.2%	90.61
Daily Fibonacci 61.8%	90.44
Daily Pivot Point S1	90.08
Daily Pivot Point S2	89.74
Daily Pivot Point S3	89.32
Daily Pivot Point R1	90.84
Daily Pivot Point R2	91.25
Daily Pivot Point R3	91.59

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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