NZD/JPY Price Analysis: Bears hold the upperhand, bearish SMA crossover might intensify momentum

The RSI on the daily chart lies deep in negative terrain.
Inidicators on the hourly chart are showing a slight improvement.
The 20 and 100-day SMAs are about to complete a bearish crossover around 91.00.

Patricio Martín FXStreet

In Tuesday's session, the NZD/JPY pair is trading with a slight rise to 90.42, marking a 0.16% gain. Despite this, sellers retain dominance within the broader market scenario, hinting towards an entrenched bearish sentiment. Encouragingly though, hourly data suggests the potential for short-term bullish corrections, indicating a touch of buyer resilience.

On the daily chart, the Relative Strength Index (RSI) shows a predominantly negative trend, remaining in the negative territory in the last sessions. Concurrently, the Moving Average Convergence Divergence (MACD) histogram reveals rising red bars, indicating a rising negative momentum.

NZD/JPY daily chart

Moving on to the hourly chart, RSI values are inclining more towards the positive side, with the recent readings registered at 53. This shift may hint at a short-term gain in buyers' momentum. In addition, the hourly MACD histogram displays green bars, adding arguments for the recovering bullish momentum.

NZD/JPY hourly chart

Upon examining the broader perspective, the NZD/JPY has showcased significant bearish tendencies as its sits below its 20, 100 and 200-day Simple Moving Averages (SMA). In addition, a bearish crossover of the 20 and 100-day SMA at around 91.00 could precipitate even sharper declines.

Summarizing, sellers seem to have control over the NZD/JPY pair's direction on the daily chart. However, recent hourly data indicates potential short-term bullish corrections. Nevertheless, the prevailing trend is inclined towards further weakness, reinforced by the SMA positioning, and a potential bearish crossover.

NZD/JPY

Overview
Today last price	90.44
Today Daily Change	0.16
Today Daily Change %	0.18
Today daily open	90.28

Trends
Daily SMA20	90.95
Daily SMA50	91.17
Daily SMA100	90.55
Daily SMA200	89.16

Levels
Previous Daily High	90.7
Previous Daily Low	90.11
Previous Weekly High	91.25
Previous Weekly Low	90.17
Previous Monthly High	92.2
Previous Monthly Low	90.17
Daily Fibonacci 38.2%	90.34
Daily Fibonacci 61.8%	90.48
Daily Pivot Point S1	90.02
Daily Pivot Point S2	89.76
Daily Pivot Point S3	89.42
Daily Pivot Point R1	90.62
Daily Pivot Point R2	90.96
Daily Pivot Point R3	91.22

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

GBP/USD weakens to two-week lows near 1.3520

GBP/USD trades on the back foot, returning to the low 1.3500s, or two-week troughs, on Tuesday. Cable’s bearish price action follows decent gains in the Greenback at the time when investors assess latest US data releases and the persistent uncertainty in the US-Iran crisis.

EUR/USD remains offered; breaks below 1.1600

EUR/USD now accelerates its daily correction, breaching below the key 1.1600 support level on Tuesday. The pair’s daily correction comes on the back of a decent bounce in the US Dollar despite disappointing US data releases and amid persistent geopolitical concerns.

Gold flirts with multi-week lows near $4,300

Gold accelerates its correction and recedes toward the key $4,300 mark per troy ounce on Tuesday. The yellow metal’s persistent decline comes in response to the solid performance of the US Dollar and a sharp move higher in US Treasury yields across the curve.

Bitcoin and Gold Outlook: Bitcoin broadly consolidates, Gold falls as US JOLTS Job Openings rise

Bitcoin (BTC) maintains sideways trading around the immediate $78,000 support on Tuesday. The Crypto King outlook shows signs of cooling after the recent rally above $81,000. However, its downside remains protected, with major moving averages providing support and steady capital inflows absorbing some selling pressure.

Global bond market sell off haunts markets

Global sovereign bonds are selling off as we start a new month. The UK is, unsurprisingly, taking the biggest hit. Two and 10-year yields rose by 10 basis points at one point on Tuesday, and are currently higher by 7 and 8bps respectively.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.