NZD/JPY Price Analysis: Cross holds gains near 85.90 amid mixed momentum

NZD/JPY trades near the 85.90 zone with minor gains on Monday.
The cross maintains a cautiously bullish outlook despite mixed technical signals.
Key support is clustered below 85.80, with resistance near 86.00.

Patricio Martín FXStreet

The NZD/JPY pair is trading near the 85.90 zone on Monday, reflecting minor gains as the market approaches the Asian session. Despite the recent upside, the broader technical picture remains mixed, with conflicting signals across both short-term and long-term indicators, keeping traders cautious.

The daily technical outlook presents a complex mix of signals. The Relative Strength Index (RSI) is in the 50s, suggesting neutral momentum, while the Moving Average Convergence Divergence (MACD) indicates sell pressure, potentially limiting further gains. However, the Bull Bear Power indicator favors buying, reflecting the pair’s recent strength, while the Awesome Oscillator hovers around the 1 area, indicating largely neutral momentum. Meanwhile, the Stochastic %K (14, 3, 3) in the 40s further supports this neutral stance, underscoring the lack of a clear short-term trend.

Moving averages paint a similarly mixed picture. Shorter-term averages, including the 20-day and 30-day Exponential Moving Averages (EMAs) and Simple Moving Averages (SMAs), all in the 80s, support a buy signal, aligning with the pair’s recent bullish tone. In contrast, the longer-term 100-day and 200-day SMAs remain bearish, highlighting the ongoing divergence between short-term and long-term trends.

Zooming into the 4-hour timeframe, the technical outlook turns slightly more positive. The 4-hour MACD Level (12, 26) signals buy momentum, reflecting the pair’s recent gains, while the 4-hour Stochastic RSI Fast (3, 3, 14, 14) and the 4-hour Relative Strength Index (14) remain neutral, suggesting the potential for continued upside in the near term. The 4-hour 10-period EMAs and SMAs also support buying, though the 20-period EMA presents a contrasting sell signal, highlighting the risk of near-term pullbacks despite the broader bullish tone.

For now, immediate support is seen around 85.83, with additional levels at 85.76 and 85.71. On the upside, resistance is likely to emerge around 85.99, followed closely by 86.03 and 86.12, potentially capping further gains as the pair attempts to break through the upper end of its recent range.

Daily Chart

Author

Patricio Martín

FXStreet

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

GBP/USD weakens below 1.3450 as US-Iran uncertainty boosts safe-haven US Dollar

The GBP/USD pair loses ground to near 1.3425 during the early Asian session on Tuesday. Uncertainty surrounding US-Iran talks drives traders toward a safe-haven currency such as the US Dollar against the British Pound. All eyes will be on the US July jobs data, which is due later on Friday.

EUR/USD flatlines above 1.1500 as traders turn cautious ahead of US NFP data

The EUR/USD pair holds steady around 1.1505 during the early European trading hours. Markets remain cautious ahead of the crucial US July jobs report, which is due later this week. Eurozone inflation ticked up in July, bolstering the case for a rate hike from the European Central Bank. The headline Eurozone inflation rose to 2.9% YoY in July from 2.8% in June, in line with expectations.

Gold consolidates above $4,050 amid Fed hike bets and Iran uncertainty

Gold seesaws between tepid gains and minor losses during the Asian session as traders seem hesitant and opt to wait for further developments surrounding the Middle East crisis. The US Dollar struggles to build on the previous day's solid bounce from the lowest level since Mid-June and acts as a tailwind for the bullion. However, the uncertainty over US-Iran peace talks helps limit the downside for the buck.

Ripple and Stellar steady as derivatives data points to easing downside pressure

Ripple and Stellar show mixed price action, with XRP holding above the key $1 support zone while XLM faces rejection at $0.173. Meanwhile, improving derivatives metrics alongside fading bearish momentum suggest that the downside pressure may be easing for both altcoins. Derivatives data shows mild bullish sentiment among traders.

NFP week: What awaits Bitcoin and Gold

This is an NFP week as markets brace for the release of a large influx of job market statistics. The data rollout begins with the JOLTS Job Openings report on Tuesday, continues with the ADP Employment report on Wednesday and Jobless claims on Thursday, and finishes with the Nonfarm Payrolls report on Friday.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.