NZD/JPY Price Analysis: Cross resilient above 20-day SMA, further upside limited

The Kiwi gathers strength against Yen, staying comfortably above the 20-day SMA on Tuesday.
Continuation of the consolidation phase is likely, with trading potentially framed between 95.00 and 97.00.
After a sharp ascent in May, buyers are likely consolidating gains for possible further ascent.

Patricio Martín FXStreet

On Tuesday, the NZD/JPY pair demonstrated resilience above the 20-day Simple Moving Average (SMA) at 95.90, with the pair inching closer to cycle highs near 97.00. The landscape indicates that the consolidation phase continues to hold sway, potentially limiting all upward movements of the cross past the mentioned cycle highs.

The Relative Strength Index (RSI) for NZD/JPY on the daily chart has escalated to 58 from 56.60, suggestive of an increase in buying momentum. Conversely, the Moving Average Convergence Divergence (MACD) continues to print red bars, insinuating a possible suppression of the bullish momentum and thereby corroborating the ongoing consolidation.

NZD/JPY daily chart

With buyers affirming presence above the 20-day SMA and indicators alluding to possible exhaustion, it elucidates the market's need to consolidate following the substantial surge observed in May. The ensuing trading sessions may continue to see the pair oscillate between the 95.00 level as a support and the 97.00 level as resistance, as the pair possibly stabilizes following recent gains.

NZD/JPY

Overview
Today last price	96.53
Today Daily Change	0.31
Today Daily Change %	0.32
Today daily open	96.22

Trends
Daily SMA20	95.84
Daily SMA50	93.57
Daily SMA100	92.37
Daily SMA200	90.71

Levels
Previous Daily High	96.23
Previous Daily Low	95.62
Previous Weekly High	96.86
Previous Weekly Low	95.27
Previous Monthly High	96.74
Previous Monthly Low	90.83
Daily Fibonacci 38.2%	95.99
Daily Fibonacci 61.8%	95.85
Daily Pivot Point S1	95.82
Daily Pivot Point S2	95.41
Daily Pivot Point S3	95.21
Daily Pivot Point R1	96.43
Daily Pivot Point R2	96.63
Daily Pivot Point R3	97.04

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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