- The NZD/JPY pair facing a notable downshift towards 89.95.
- Negative incline and territory of the daily chart's RSI signals strong selling momentum.
- Four-hour-chart indicators allude to intensifying bearish sentiment, despite SMAs endorsing bullish outlook on a wider scale.
On Monday's session, the NZD/JPY pair was observed at 89.95. Technically speaking, the selling pressure is visible on the daily chart, with bears gaining ground, while the four-hour chart revealed signs of gloom with indicators diving into negative territory.
Looking at the indicators on the daily chart, it is reflected that the bears are currently dominating. The Relative Strength Index (RSI) is on the negative side with a declining slope, indicating a bearish sentiment in the market. Similarly, the Moving Average Convergence Divergence (MACD) portrays a bearish scenario with rising red bars. Tha being said, although the pair is trading below the 20-day Simple Moving Average (SMA), it is still above the 100 and 200-day SMAs implying a strong grip by bulls in the long run. However, the bulls need to garner more momentum to dominate the shorter time frames.
Shifting focus to the shorter time frame, the selling pressure is also the dominant force. The RSI on the four-hour chart is showing signs of entering oversold conditions, hinting at an imminent pullback. Similarly, the MACD on this timeframe continues to print red bars, adding fuel to the prevailing selling momentum. In summary, despite the broader bullish control, the bears seem to be dictating the short-term moves.
NZD/JPY technical levels
NZD/JPY daily chart
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