NZD/JPY bulls gather momentum as bears continue consolidating
- NZD/JPY showcases 0.25% gains, marking a strong start to the week.
- Bulls are command on broader timeframe with the pair above the 20,100,200-day SMAs.
- On the shorter time frames, bulls are gathering traction.
On Tuesday's session, the NZD/JPY pair was spotted at around 89.70, showing a modest uptick of 0.25%. In addition, rebounding from a 1.70% decline since Thursday, bears are momentarily stepping back, allowing the bulls to gain ground.
Indicators on the daily chart reflect a stage of bullish domination. The ascending trajectory in the Relative Strength Index (RSI) emphasises the prevailing strength of the buyers, which is further corroborated by the pair's position above its Simple Moving Averages (SMAs) of 20, 100, and 200 days. However, the Moving Average Convergence Divergence (MACD) shows a series of decreasing green bars, a possible warning of a waning momentum on the part of the buyers. Yet, while the bears seem to be catching their breath after propelling down the pair by more than 1.70% since Thursday, the dominant buying pressure persists in the broader context.
Regarding shorter-term momentum, indicators on the 4-hour chart add consistency to the buyers stepping in. The four-hour Relative Strength Index (RSI) maintains a positive inclination while Moving Average Convergence Divergence (MACD) exhibits decreasing red bars, reflecting a slight upside bias, and the overall momentum seems more tilted in favour of the buyers.
Support Levels: 89.37, 89.00,88.70.
Resistance Levels: 90.00, 90.35, 91.00.
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.
