NZD/JPY Price Analysis: Bearish momentum strengthens as sellers reclaim the 20-day SMA

The daily chart of the NZD/JPY indicates a weakening momentum, with RSI and MACD signifying rising selling pressure.
The NZD/JPY plunged below the crucial short-term 20-day SMA, hinting at immediate bearish prospects.
Despite recent bearish actions, the long-term outlook continues to favor buyers.

Patricio Martín FXStreet

The NZD/JPY declined to 91.00, down by 0.27% on Friday. Bears are quietly gaining ground conquering the 20-day Simple Moving Average (SMA) and the selling traction is mounting. On the broader outlook, the trend is still bullish.

On the daily chart, the Relative Strength Index (RSI) pair reveals a recent drift into negative territory towards 47, indicating weakening momentum. Likewise, the Moving Average Convergence Divergence (MACD) paints a similar picture with a fresh red bar, signaling a growing bearish momentum. These indicators collectively imply sellers' dominance in the current market scenario.

NZD/JPY daily chart

Upon examining the hourly chart, the RSI stands below its middle points, also adding arguments for a negative short-term outlook. In addition, the MACD histogram is printing decreasing green bars a clear indication of diminishing bullish momentum.

NZD/JPY hourly chart

When turning the lens to the broader landscape, NZD/JPY underwent substantial changes on Friday. The pair sunk beneath the 20-day Simple Moving Average (SMA), a significant short-term technical indicator, thus potentially establishing a bearish outlook in the immediate future. Despite this, the pair has managed to maintain its position above the 100-day and 200-day SMAs, revealing sustained bullish momentum over a more extended period. That being said, as bears gather ground, they might make a stride toward the 100-day SMA at around 90.60 which in case of conquering it, would worsen the outlook for the pair.

NZD/JPY

Overview
Today last price	90.99
Today Daily Change	-0.28
Today Daily Change %	-0.31
Today daily open	91.27

Trends
Daily SMA20	91.05
Daily SMA50	91.44
Daily SMA100	90.67
Daily SMA200	89.35

Levels
Previous Daily High	91.62
Previous Daily Low	91.18
Previous Weekly High	92.37
Previous Weekly Low	90.7
Previous Monthly High	92.2
Previous Monthly Low	90.17
Daily Fibonacci 38.2%	91.35
Daily Fibonacci 61.8%	91.45
Daily Pivot Point S1	91.09
Daily Pivot Point S2	90.92
Daily Pivot Point S3	90.66
Daily Pivot Point R1	91.53
Daily Pivot Point R2	91.79
Daily Pivot Point R3	91.96

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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