NZD/JPY Price Analysis: Bears tighten grip as rejection at 20-day SMA fuels downside pressure
- NZD/JPY slides to 86.65 on Thursday, marking a continued retreat from recent highs.
- The pair struggles to regain ground after facing rejection at the 20-day SMA, highlighting weak bullish attempts.
- With fading momentum and declining RSI, further losses may be in store unless buyers regain control.
The NZD/JPY pair took another step lower on Thursday, slipping to 86.65 as selling pressure intensified. Despite brief attempts to reclaim lost ground, the rejection at the 20-day Simple Moving Average (SMA) around 87.20 exposed the pair to further downside risks, signaling that bulls lack the conviction to shift the momentum in their favor.
Technical signals suggest that sellers remain in control. The Relative Strength Index (RSI) is dropping sharply at 45, pointing to waning buying interest, while the Moving Average Convergence Divergence (MACD) histogram is printing decreasing red bars, signaling persistent bearish momentum. The inability to break the 20-day SMA resistance reinforces the view that sellers still dominate the market.
Looking ahead, traders will watch the 86.40 support level closely. A break below this could accelerate losses toward 86.00, where buyers may attempt to stabilize the decline. On the upside, regaining the 87.00 handle would be the first step for bulls to regain traction, though a decisive push above the 20-day SMA remains essential to alter the current bearish outlook.
NZD/JPY daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
