NZD/JPY Price Analysis: Continuation of bullish momentum as pair approaches 98.80

NZD/JPY's bullish trajectory extends and rose near 98.80, setting fresh highs since 2007.
Bulls start to show some signs of exhaustion.
The robust bullish outlook is maintained, although a consolidation appears imminent.

Patricio Martín FXStreet

On Monday, the NZD/JPY cross recorded a modest gain of 0.31%, pushing its value up to a high of 98.80 and then retreating to 98.10. This increase marks the pair's highest position in over a decade, further solidifying the ongoing bullish bias. However, due to the overbought conditions indicated by the daily Relative Strength Index (RSI), a necessary correction may be on the horizon.

The daily chart's RSI has tipped over into overbought territory, signaling the continued advance of the bullish run seen since last week. Although the bullish momentum is still the driving force in this pair, the Moving Average Convergence Divergence (MACD) is not generating green bars. This suggests that the current bullish pace may be leveling off.

NZD/JPY daily chart

Moving forward, in case of a correction immediate support is now at 97.00 near the 20-day Simple Moving Average (SMA), with additional support at the previous low of 95.00. Buyers should now target the next psychological levels at 98.50 and 99.00 for additional resistance in case they have more gas left in their tanks.

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

AUD/USD bounces off multi-month low, nears 0.6900

AUD/USD edges higher toward 0.6900 in the Asian session on Wednesday, recovering some of the previous day’s losses to its lowest level since March as the US Dollar stalls the hot US CPI-inspired rally amid hopes of a US-Iran peace deal. Meanwhile, hawkish comments from FOMC members have almost confirmed another December rate hike, which favors USD bulls and should cap the Aussie.

USD/JPY remains capped below 159.00 amid looming intervention risks

USD/JPY struggles to build on the previous day’s strong gains to a near one-month top as intervention risk supports the Japanese Yen while hopes of a US-Iran peace deal cap the safe-haven US Dollar. That keeps the pair's upside limited below 159.00, for now.

Gold defends $4,000, but for how long?

Gold is rebounding from one-week lows near the $4,000 region early Wednesday, but buyers remain sceptical amid increased hawkish sentiment around the US Federal Reserve’s (Fed) monetary policy outlook and Veterans Day-led thin liquidity conditions.

Pi Network extends gains against a bearish market backdrop

Pi Network continues to attract some buyers on Wednesday after an over 8% rebound the previous day. PI token sustains above $0.070 as the price extends its rebound after reaching an oversold level, decoupling from the broader market correction. Technically, Pi Network must break above the overhead trendline near $0.0740 to resume an upward trend.

Beyond the CPI: The complete inflation story

Here we go again. The Bureau of Labor Statistics released the October Consumer Price Index data. It was hotter than expected. Persistent price inflation has once again raised expectations for a December rate hike. In fact, many analysts now think the Fed may hike 50 basis points.

Gold reclaimed $4,100. Tuesday’s CPI test decides if it holds

Gold (XAU/USD) starts the week on a positive note, reclaiming the $4,100 psychological level as the US Dollar (USD) retreats from its recent highs. The precious metal recovers from Friday's losses, although investors remain cautious ahead of Tuesday's US Consumer Price Index (CPI) report, which could determine the next direction for Bullion.