NZD/JPY Price Analysis: Cross dips towards 20-day SMA, sellers strengthen

Kiwi's grip loosens against the Yen on Friday, moving towards the 20-day SMA.
The cross cruises through a consolidation phase while the stance of the bear is strengthening.
Defense around the 20-day SMA starts showing signs of weakness, hinting at potential declines.

Patricio Martín FXStreet

On Friday, the NZD/JPY pair faced selling pressure, with the cross declining towards the 20-day Simple Moving Average (SMA) at 95.70. It appears that the consolidation phase might have tightened its grip around the pair, restricting the buyers' ability to keep the cross afloat.

The Relative Strength Index (RSI) for NZD/JPY on the daily chart currently stands at 53, reflecting a decrease from the previous session's RSI value of 62. The RSI's movement towards the neutral zone, away from the oversold or overbought regions, hints at a moderation in buying pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) has started to print rising red bars, indicating a growing selling momentum and reinforcing the possibility of extended consolidation or even possible declines.

NZD/JPY daily chart

The cross's decline towards 20-day SMA coupled with strengthening selling pressure could potentially disrupt buyers' defense of the mentioned support. Despite the recent jump from around 91.00 to 96.00 since early May, it seems that consolidation has started to reign, marking a pause in the uptrend as gains are consolidated.

NZD/JPY

Overview
Today last price	95.67
Today Daily Change	-0.78
Today Daily Change %	-0.81
Today daily open	96.45

Trends
Daily SMA20	95.63
Daily SMA50	93.35
Daily SMA100	92.25
Daily SMA200	90.62

Levels
Previous Daily High	96.74
Previous Daily Low	96.4
Previous Weekly High	96.74
Previous Weekly Low	95.43
Previous Monthly High	96.74
Previous Monthly Low	90.83
Daily Fibonacci 38.2%	96.53
Daily Fibonacci 61.8%	96.61
Daily Pivot Point S1	96.32
Daily Pivot Point S2	96.19
Daily Pivot Point S3	95.98
Daily Pivot Point R1	96.66
Daily Pivot Point R2	96.87
Daily Pivot Point R3	97

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 extends gains beyond $4,050; upside seems capped as Fed hike bets support USD

Gold climbs further beyond $4,050 heading into the European session on Wednesday, reversing a part of the previous day's heavy losses, though the upside seems limited. Tuesday's hot US inflation figures fuel expectations of a more aggressive policy tightening by the US Federal Reserve (Fed). This helps the US Dollar (USD) preserve Tuesday's strong gains, despite hopes for US-Iran diplomacy, and might keep a lid on any meaningful appreciation for the non-yielding bullion.

Bitcoin at risk of sharp moves as leverage builds in derivatives markets

Bitcoin remains in a capped tone, trading around $73,800 after slipping to a low of $72,727 following the previous day’s hot US inflation figures. Institutional demand continues to weaken, with BTC spot Exchange Traded Funds recording a $95 million outflow on Tuesday, marking the fourth straight day of withdrawals. Traders should be cautious as a K33 Research report highlights that BTC is at risk of sharp moves as leverage builds in derivatives markets.

Hot CPI helps cement December Fed hike as Nvidia slumps

October CPI inflation landed yesterday and beat expectations across the board. Note that we only received the MM figures because of last year’s government shutdown. Headline MM came in at 0.4%, beating the 0.3% forecast, though below September's 0.6%. Core MM also came in at 0.3%, slightly higher than the 0.2% estimate and matching the prior month’s reading.

What the US CPI headline doesn’t tell you about inflation

Brent crude has fallen about a third since mid-October on hopes the Iran war is ending, but diesel, freight and fertiliser costs haven't followed. Those costs reach US consumer prices in stages through 2027 and could keep inflation high after gasoline gets cheaper.