- The NZD/JPY is currently trading at around 91.20, recording a 0.73% decrease in Thursday's session.
- Based on the daily chart, RSI suggests a shift from a bullish to a bearish area.
- A closer look at the hourly chart underlines the intensified selling pressure with the RSI residing near oversold territory.
- Despite these short-term bearish signals, the NZD/JPY is still operating above main SMAs suggesting a continued influence from long-term bullish buyers.
In Thursday's session, the NZD/JPY pair is trading substantially lower at around the 91.20 level, implying a potent selling momentum marking a 0.73% decrease on the day. Despite the immediate downward inclination, the pair maintains its stance in a broader bullish territory as long-term buyers retain control and these movements could be considered as a consolidation phase after reaching multi-year highs.
Based on the daily Relative Strength Index (RSI), the pair has recently fallen from positive territories into negative. Yet, before this transposition, the pair spent considerable time in overbought territories, which could indicate profit-taking movements. Turning now to the Moving Average Convergence Divergence (MACD) histogram, an uninterrupted sequence of increasing red bars is seen. These highlight an expansion in negative momentum, suggesting that sellers are currently dictating the market dynamics.
NZD/JPY daily chart
Shifting focus to the hourly chart, the RSI is noticeably near the oversold territories revealing how the selling pressure has accelerated. This is further strengthened when topped by the continuous red bars on the MACD in the hourly chart cementing the argument for the increased selling pace.
NZD/JPY hourly chart
Despite the bearish signals from the daily and hourly charts, the pair is still in broader bullish territory as it lies above the 100 and 200-day Simple Moving Averages (SMAs), showing that long-term buyers are still in command. This discrepancy could imply a temporary bearish correction within an overall bullish trend ordained by the alignment of the SMAs.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD declines below 1.0700 as USD recovery continues
EUR/USD lost its traction and declined below 1.0700 after spending the first half of the day in a tight channel. The US Dollar extends its recovery following the strong Unit Labor Costs data and weighs on the pair ahead of Friday's jobs report.
GBP/USD struggles to hold above 1.2500
GBP/USD turned south and dropped below 1.2500 in the American session on Thursday. The US Dollar continues to push higher following the Fed-inspired decline on Wednesday and doesn't allow the pair to regain its traction.
Gold stuck around $2,300 as market players lack directional conviction
Gold extended its daily slide and dropped below $2,290 in the second half of the day on Thursday. The benchmark 10-year US Treasury bond yield erased its daily losses after US data, causing XAU/USD to stretch lower ahead of Friday's US jobs data.
Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.
Happy Apple day
Apple is due to report Q1 results today after the bell. Expectations are soft given that Apple’s Chinese business got a major hit in Q1 as competitors increased their market share against the giant Apple.