NZD/JPY Price Analysis: Bulls maintain dominance, overbought conditions may fuel a correction

The NZD/JPY rose by 0.52% during Thursday's session to 93.34.
The daily RSI of the NZD/JPY signals overbought conditions, indicating a strong buying momentum with possibilities of a near correction.
On the hourly chart, indicators are consolidating, making it a deviation from the overbought vibe of the daily chart.

Patricio Martín FXStreet

In Thursday’s session, the NZD/JPY rose to 93.34, rallying by 0.52% reaching its highest level since 2015. It appears that buyers have predominantly influenced recent trends, causing the pair to enter an overbought territory with a Relative Strength Index (RSI) above 70 on the daily chart. While the persistent uptrend remains unbroken, caution might be advisable due to the over-extended buying movements which could use a healthy correction.

Meanwhile, the daily Moving Average Convergence Divergence (MACD) histogram continues to print green bars, indicating positive momentum in the short term. This underscores the powerful buying activity that has driven the pair into overbought territory.

In contrast, the hourly chart displays the RSI within a healthy 50-70 range, foreshadowing a potential short-term cooling off or consolidation period. Likewise, a slowdown in the robust buying momentum is suggested by the flat red hourly MACD histogram bars. However, the broader uptrend remains intact above the 200, 100, and 20-day SMAs on the daily chart.

NZD/JPY daily chart

NZD/JPY hourly chart

NZD/JPY

Overview
Today last price	93.25
Today Daily Change	0.44
Today Daily Change %	0.47
Today daily open	92.81

Trends
Daily SMA20	91
Daily SMA50	90.3
Daily SMA100	89.75
Daily SMA200	88.42

Levels
Previous Daily High	92.99
Previous Daily Low	92.39
Previous Weekly High	92.12
Previous Weekly Low	91.04
Previous Monthly High	90.99
Previous Monthly Low	88.64
Daily Fibonacci 38.2%	92.76
Daily Fibonacci 61.8%	92.62
Daily Pivot Point S1	92.47
Daily Pivot Point S2	92.13
Daily Pivot Point S3	91.87
Daily Pivot Point R1	93.07
Daily Pivot Point R2	93.33
Daily Pivot Point R3	93.67

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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