NZD/JPY bullish momentum flattens, bears start to step in
- NZD/JPY reversed its course on Wednesday, peaking at a high of 90.90 and then settling at 90.40.
- Bullish momentum flattened on the daily chart.
- Shorter time frames indicate that bears are gaining traction.
In Wednesday's session, the NZD/JPY is trading at 90.40, showing a mild gain of 0.25% after peaking at a high of 90.90 earlier in the session.
The indicators on the daily chart are flashing signs of exhaustion of the bullish momentum. The Relative Strength Index (RSI) remains flat in the positive territory, while the Moving Average Convergence Divergence (MACD) shows rising red bars, which favors the case of the halt of upward movements. On the other hand, the pair's position above its 20-day, 100-day, and 200-day Simple Moving Averages (SMAs) largely indicates that buyers still hold the upperhand in the larger time frames.
On the shorter time frames, the four-hour chart indicates a headwind for the bulls. A downward tilt in the four-hour RSI underscores the bearish predisposition, which is affirmed by the Moving Average Convergence Divergence (MACD) that shows ascending red bars.
Support Levels: 90.25 (20-day SMA), 90.10, 90.00.
Resistance Levels: 90.90, 91.00, 91.20.
NZD/JPY daily chart
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Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
