NZD/JPY Price Analysis: Consolidating below 90.00, bulls await a fresh push
- NZD/JPY was flat on Wednesday, trading at 89.40.
- The RSI remains below 50, indicating a subdued buying pressure.
- The pair is currently trading within a range between the 88.50 and 89.50 support and resistance levels.
The NZD/JPY currency pair traded flat on Wednesday around the 89.40 zone. Technical indicators provide contrasting signals, with the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) offering contrasting perspectives.
The RSI, a measure of momentum, has flattened and is currently at 45, below the neutral level of 50. This indicates decreasing buying pressure and suggests that the bulls are losing some of their recent momentum. However, the MACD continues to show flat green bars. Green bars generally indicate upward momentum, but the flatness suggests that the upward thrust is not strong enough at the moment.
Volume has been relatively low, indicating a lack of conviction in the recent price movements. The pair is currently trading within a range between the 88.50 and 89.50 support and resistance levels. The 88.50 is a significant support level that has been held since the beginning of August, while the 90.00 resistance is a barrier that the bulls struggle to tackle. A break below 88.50 could lead to further declines towards 86.00, while a break above 89.50 could push the pair up to 91.00.
NZD/JPY daily chart
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Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
