NZD/JPY Price Analysis: Bears assert their presence, outlook still positive
- The NZD/JPY is currently at 90.46 with mild losses.
- Despite indicators suggesting negative momentum, the overall trend is in favor of the bulls.
- The four-hour chart stresses a more evident negative outlook.
On Friday's trading session, the NZD/JPY pair was spotted around 90.46, enduring mild losses. The neutral to bearish prevalence on the daily chart complexity informs that sellers are gradually asserting dominance, while the four-hour chart indicates an increasingly notable negative tilt.
The indicators on the daily chart, namely the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) and moving averages, are showing mixed signals but overall negative ones. The RSI's trajectory appears downward-bound inside the positive area, suggesting some buying exhaustion, while the MACD histogram displays fading green short bars, reinforcing the weakened bullish impulse. Moreover, the currency pair manages to stay above the key Simple Moving Averages (SMAs) of 20, 100, and 200, signaling a bull-dominated broader time frame, although some struggle is apparent for the short term.
Downscaling to the four-hour chart portrays a significantly more bearish sentiment. The Relative Strength Index (RSI) pursues a southward direction within the negative domain, an evident indication of increased bearish propulsion. This is further confirmed by the fading green bars of the Moving Average Convergence Divergence (MACD), which suggests that the bulls are ceding ground to the bears, at least in the short term. The intensified selling momentum in this lower time frame might impose a tug of war with the broader bullish bias, suggesting a potential period of further downside.
NZD/JPY technical levels
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.
