NZD/JPY Price Analysis: Bullish bias continues as pair surpasses 98.00
- NZD/JPY's bullish run persists as the cross surges past 98.00, marking fresh highs since 2007.
- The 20-day SMA provides robust support at 96.90.
- The strong bullish outlook stays intact, but a consolidation looms.
On Friday, the NZD/JPY cross made significant strides, gaining momentum and setting new cycle highs beyond 98.00. Notably, this represents the pair's highest position since 2007, substantiating the strong bullish bias. However, given the overbought conditions, a healthy correction would be necessary.
The daily chart's Relative Strength Index (RSI) value now sits at 68, entering the overbought territory. This demonstrates a continued bullish advance from earlier in the week, indicating that positive momentum still drives the pair. Despite these strong bullish indicators, the Moving Average Convergence Divergence (MACD) is not turning out green bars, suggesting that buyers may be losing their momentum.
NZD/JPY daily chart
Going forward, market participants keep a keen eye on the immediate support level of 97.00, with additional support at 96.90, close to the 20-day SMA and the previous low of 95.00. Moreover, they have trained their sights on the resistance targets of 98.50 and 99.00. A decisive breach above the ongoing range will provide further confirmation of the upside potential while slipping beneath the 20-day SMA could signal a more profound correction.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
