NZD/JPY Price Analysis: Bears are in control, eyeing 77.00

As the Asian Pacific session begins, the NZD/JPY moderately advances during the day, trading at 77.32 during the day at the time of writing. Factors like omicron strain vaccine effectivity comments by a pharmaceutical CEO and Fed’s Chair Jerome Powell hawkish comments dampened the market sentiment, thus favoring safe-haven currencies like the Japanese yen,

Furthermore, on Tuesday, at a hearing at the US Senate Committee on Banking and Housing, US central bank Chairman Jerome Powell switched from a neutral-dovish monetary policy stance towards a hawkish one. He said that the Fed’s target for inflation has been met and commented that inflation can not be longer considered “transitory.”

NZD/JPY Price Forecast: Technical outlook

From a technical perspective, the NZD/JPY daily chart depicts a downward bias, confirmed by the daily moving averages (DMA’s) residing above the spot price with a flattish slope. Further, the cross-currency pair broke below the September 3 high at 78.64 previous resistance-turned-support, a crucial level, as the 100 and the 200-DMA were exposed and broken, once the former gave way to JPY bulls.

In the outcome of extending the downward move, the first support would be the November 30 low at 76.65. A breach of the latter would expose the September 22 low at 76.33, followed by the August 19 low at 74.55.

On the other hand, the first resistance would be the November 30 high at 77.76. A break of that level would exert upward pressure on the pair, exposing the 100 and the 200-DMA’s around the 78.09-78.25 area. Once the abovementioned is broken, the next resistance would be the 50-DMA at 79.52.