NZD/JPY Price Analysis: Cross consolidates near 88.00
- NZD/JPY moves sideways after a three-day winning streak, and mixed technical signals emerge.
- The RSI remains near the oversold area despite rising, and the MACD prints decreasing red bars.
- Shrinking volume suggests that the selling pressure is waning, indicating a potential reversal.
The NZD/JPY currency pair remained in a consolidation pattern on Friday, hovering around the 88.000 level. While the pair has experienced a three-day winning streak, technical indicators present contrasting signals, and the pair is set to side-ways trade.
From a technical standpoint, the Relative Strength Index (RSI) indicator is currently at 30, indicating that the pair is still in the oversold area. This suggests that there could be further room for recovery. The Moving Average Convergence Divergence (MACD) indicator, on the other hand, is showing decreasing red bars, which could signal a stagnation of the selling pressure. Trading volume has decreased in recent sessions, which could indicate that selling pressure is easing. This is a positive sign for the bulls, as it suggests that they may be gaining some momentum.
The bulls are attempting to push the pair higher towards the 88.50 resistance level and if they succeed in breaking above this level, it could open the door to further gains toward the 89.00 area. However, if the bears regain control and push the pair below the 88.00 level, it could lead to a deeper correction towards the 87.50-87.00 support zone.
NZD/JPY Daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
