- The NZD/JPY pair holds strong at 90.15, making gains of 0.30%.
- The BoJ left its policy rate unchanged, just as expected.
- Despite the mixed short-term outlook, bulls retain control, with the pair trending above the key SMAs.
- Indicators on the four-hour chart signal a slight tilt towards selling momentum, with RSI and MACD in negative territory.
On Tuesday's session, the NZD/JPY pair made gains to 90.15 due to a 0.30% increase. Although the daily chart outlook remains neutral to bearish, bullish forces appear to maintain a strong stance. However, the pair's situation on the four-hour outlook tilts slightly towards the downside.
On the fundamental side, Governor Ueda from the Bank of Japan (BoJ) gave signs on when the bank will leave negative interest rates stating that the likelihood of achieving 2% inflation target is gradually rising. This reaffirms that the BoJ will eventually exit the ultra-loose monetary policy, which may provide some support to the Yen.
On the technical side, from a daily chart perspective, the indicators are presenting a mixed picture. The relative strength index (RSI) is trending upwards but remains in the bearish zone, suggesting a lack of strong buying momentum. This is further supported by the flat red bars display in the Moving Average Convergence Divergence (MACD), which indicates the presence of selling traction. However, the position of the cross above the 20, 100, and 200-day simple moving averages (SMAs) tells a different narrative, demonstrating that bulls retain robust long-term control.
Turning to the shorter-time frame, the RSI on the four-hour chart is also navigating in the bear territory with a negative incline, suggesting a possible continuation of the selling pressure in the near term. The MACD paints a similar picture with flat red bars, highlighting a pause in bullish activity. Considering these factors, the immediate momentum on the four-hour chart is slightly tipped in favour of the bears. Nonetheless, with the bulls demonstrating resilience, traders should keep a close eye for any potential shift in momentum that may hint towards a reversal of the short-term bearish trend as bulls are presenting a battle.
NZD/JPY technical levels
NZD/JPY daily chart
-638416346186941809.png)
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 slumps below $2,300 as US yields rebound
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.