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.
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.
