NZD/JPY Price Analysis: Bulls regain control, bear’s grip weakens
- The NZD/JPY pair rose by 0.15% in Monday's session but remains below 88.00.
- The pair is currently trading in a range between 87.50 and 88.40.
- Bears have the 87.000 threshold on their sight.
The NZD/JPY pair has recovered some of its recent losses, suggesting that the bears' grip is weakening. In the meantime, indicators remain in negative terrain and the outlook suggests that the sellers are taking a breather.
The Relative Strength Index (RSI) flattened below 50, indicating that the bears are losing momentum. The Moving Average Convergence Divergence (MACD) printed a red bar which indicates a steady selling pressure.
NZD/JPY daily chart
After having fallen below the 20-day Simple Moving Average (SMA) of 89.60, bulls have stepped up action to defend the 87.50 support which might have parked the pair from further southers movements. If the buying continues, critical resistance levels appear at 89.00, 89.50, and 90.00.
Overall, the technical picture for the NZD/JPY pair is mixed. The pair is showing signs of a potential reversal, but it remains below its key moving averages. If the pair can break above its 20-day SMA, it could signal a further rally in the pair. Meanwhile, bears command.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
