NZD/JPY Price Analysis: Bearish bias persists and limits the upside, bulls rejected at 89.00
- NZD/JPY cleared gains on Monday, indicating that the buying traction remains weak and stabilized at 88.60.
- The RSI remains below 30, and the MACD still shows red bars, signaling that sellers remain steady.
- If the bulls fail to conquer the 89.00 area, the downside movements might return.
The NZD/JPY tallied gains on Monday but the momentum seems to be flattening. The selling pressure remains strong, and further downside is possible in the near term if bulls fail to pass through the 89.00 threshold.
From a technical perspective, the Relative Strength Index (RSI) remains near 30, indicating strong bearish momentum. The Moving Average Convergence Divergence (MACD) indicator shows decreasing red bars, suggesting that bullish momentum despite diminishing is still around the corner.
On the positive side, trading volume remains subdued, which could indicate that the selling pressure is easing. The pair's immediate support is at 88.00 and a break below could see the pair test the 87.80-88.50 area, while a break above 89.00 could retest the 90.50 zone (20-day SMA).
NZD/JPY daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
