NZD/JPY extends consolidation, still closes a winning week
- NZD/JPY was down by 0.40% on Friday and closed a 0.40% weekly gain.
- Buyers continue to be on the sidelines after pushing the pair to multi-year highs this week.
- Indicators are losing momentum on the daily chart.
In Friday's session, the NZD/JPY cross extended its decline towards 89.65 as investors continued to take profits from Tuesday and Wednesday's rally, which took the pair to its highest level since 2015.
The daily Relative Strength Index (RSI) points south, above the 50 middle points, while the Moving Average Convergence Divergence (MACD) prints lower green bars, evidencing the buyers are taking a break. On the four-hour chart, the bearish momentum isn't so present, and the RSI and MACD are starting to edge upwards after being weak during the session. Still, it looks like further consolidation may be incoming for the pair.
That being said, the cross stands above the 20,100- and 200-day Simple Moving Averages (SMA), indicating that the overall trend currently favours the NZD.
Support levels: 89.25, 89.00, 88.60 (20-day SMA).
Resistance levels: 90.00, 90.30, 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.
