NZD/JPY Price Analysis: Buyers step back to consolidate, sellers gain ground
- The daily RSI for the NZD/JPY shows a decreasing trend, hinting at a growing bearish bias.
- On the hourly chart, both RSI and MACD reflect a growing bearish tendency, supporting the daily chart's sentiment.
- Any movements that leave the pair above its 20-day SMA won’t challenge the bullish outlook.
The NZD/JPY pair is down by 0.45% on Tuesday, trading at 92.99. Despite some bearish undertones, the NZD/JPY maintains a long-term bullish trend above its principal Simple Moving Averages (SMAs). There is potential for short-term momentum shifts, as investors are stepping back to take profits after propelling the pair to highs since 2015 on Monday.
On the daily chart, the Relative Strength Index (RSI) for NZD/JPY has decreased over the previous sessions. The index moved from overbought terrain to below 70 indicating a possible reversal or slowdown in the buyer’s traction.
NZD/JPY daily chart
Moving to an intraday basis, the hourly chart presents a similar scenario. The RSI plunged into negative territory. Simultaneously, the Moving Average Convergence Divergence (MACD) printed a red bars signaling a rising negative momentum. This indicates that investors continued taking profits on Tuesday and that the sellers commanded the trades during the session.
NZD/JPY hourly chart
From a broader perspective, NZD/JPY remains bullish despite the downside as it remains above its Simple Moving Averages (SMA) of 20,100, and 200-day periods. However, if the bears manage to gather additional momentum they might reclaim the 20-day SMA which may worsen the outlook for the pair in case of being lost.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
