NZD/JPY Price Analysis: Bears seize control, key 20-day SMA broken breached
- NZD/JPY ended Thursday's session with a significant decline.
- The bears successfully pushed the pair below the crucial 20-day SMA, signaling a shift in command.
In Thursday's trading session, the NZD/JPY pair dropped substantially, losing 1.40% to land at 96.80. The pair slipped below the 20-day Simple Moving Average (SMA) of 97.70, indicating a negative outlook in the short-term as the outlook is now somewhat bearish at least for the short-term.
On the daily chart, the Relative Strength Index (RSI) plummeted to 44. This swift shift towards negative territory suggests a decline in market momentum, and it is important to note that the RSI shifted from nearly overbought terrain to below the middle point. The Moving Average Convergence Divergence (MACD) also adds weight to this bearish scenario, registering rising red bars indicative of decreased buying momentum.
NZD/JPY daily chart
In light of the bearish turn, immediate support levels are now set at 96.50, 96.00, and further down to 95.00. In contrast, resistance is now likely to be encountered at previous support levels of 97.00, 97.70 (20-day SMA), and 98.00.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
