NZD/JPY Price Analysis: Bullish momentum adjusts, correction begins following overbought signals

The daily chart continues to flash overbought signals despite a slight correction, with the overall uptrend still intact.
Despite a minor dip to 96.40, NZD/JPY remains near its multi-year peak.
The critical support level for the pair remains firmly at 95.00, marking a pivotal level to ward off losses.

Patricio Martín FXStreet

In Wednesday's session, the NZD/JPY pair saw a small correction to 96.40 but remains at its highest level since July 2007 at around 96.70. This adjustment doesn't quite alter the current outlook, merely turning it slightly cautious given the persistent overbought signals, but the overarching bullish trend carries on.

The daily chart's indicators confirm this narrative where the Relative Strength Index (RSI) remains in a deep overbought condition. Meanwhile, the Moving Average Convergence Divergence (MACD) keeps showing sustained positive momentum with its consistent green bars.

NZD/JPY daily chart

On the hourly chart, there is a visible weakening of strength compared to the daily perspective, and an ongoing edging downward can be observed.

NZD/JPY hourly chart

In a broader context, the NZD/JPY continues to display a strong uptrend, as shown by its position above the 20, 100, and 200-day Simple Moving Averages (SMA). Despite the slight correction, the pair's short-term gains still overshadow its medium and long-term averages.

As the looming correction gains momentum, any further downward movements should ideally keep the pair above its SMAs. Crucial to the monitoring is the first strong support level observed at 95.00, which the pair could potentially use to cushion any significant losses.

NZD/JPY

Overview
Today last price	96.35
Today Daily Change	-0.17
Today Daily Change %	-0.18
Today daily open	96.52

Trends
Daily SMA20	94.31
Daily SMA50	92.61
Daily SMA100	91.85
Daily SMA200	90.29

Levels
Previous Daily High	96.74
Previous Daily Low	96.43
Previous Weekly High	96.15
Previous Weekly Low	95.08
Previous Monthly High	95.42
Previous Monthly Low	89.96
Daily Fibonacci 38.2%	96.62
Daily Fibonacci 61.8%	96.55
Daily Pivot Point S1	96.39
Daily Pivot Point S2	96.25
Daily Pivot Point S3	96.08
Daily Pivot Point R1	96.7
Daily Pivot Point R2	96.88
Daily Pivot Point R3	97.01

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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