NZD/JPY Price Analysis: Cross reached multi-year highs, upside appears limited

Kiwi shows signs of fatigue against the Yen, after reaching highest level since June 2007 on Thursday.
Indicators on the daily chart suggest potential further consolidation, with trading confined between 95.00 and 97.00.
A retest of the 97.00 level is possible, but a breach is unlikely as buyers consolidate gains from the significant ascent in May.

Patricio Martín FXStreet

On Thursday, the NZD/JPY pair exhibited signs of fatigue, following its advancement to the multi-year highs logged earlier in the week. Clearly, the technical landscape suggests an extension of the consolidation phase, potentially keeping the pair's upside movements capped below the psychological 97.00 level.

The daily Relative Strength Index (RSI) for NZD/JPY has slightly retreated to 59, indicative of a waning in the bullish momentum. The Moving Average Convergence Divergence (MACD) continues to print flat red bars, further endorsing the perspective of ongoing consolidation.

NZD/JPY daily chart

The continuous presence of buyers above the 20-day Simple Moving Average (SMA) indicates their effort to sustain the bullish push. Yet, the recent exhaustion signal demonstrated by the daily technical indicators supports the market's need to consolidate following the significant surge recorded in May. The upcoming trading sessions might see the pair oscillate between the 95.00 level, serving as support, and the 97.00 level, acting as resistance, as the pair looks to stabilize after recent gains.

The longer-term SMAs established around 90.00 - 92.00 safeguard the overall bullish complexion of the pair.

NZD/JPY

Overview
Today last price	96.83
Today Daily Change	-0.09
Today Daily Change %	-0.09
Today daily open	96.92

Trends
Daily SMA20	96.05
Daily SMA50	93.8
Daily SMA100	92.5
Daily SMA200	90.81

Levels
Previous Daily High	97.1
Previous Daily Low	96.41
Previous Weekly High	96.86
Previous Weekly Low	95.27
Previous Monthly High	96.74
Previous Monthly Low	90.83
Daily Fibonacci 38.2%	96.84
Daily Fibonacci 61.8%	96.67
Daily Pivot Point S1	96.52
Daily Pivot Point S2	96.11
Daily Pivot Point S3	95.82
Daily Pivot Point R1	97.21
Daily Pivot Point R2	97.5
Daily Pivot Point R3	97.9

Author

Patricio Martín

FXStreet

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

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