NZD/JPY Price Analysis: Fails to cross short-term hurdle below 79.00 despite RBNZ rate hike
- NZD/JPY eases after refreshing weekly top, snaps three-day uptrend.
- RBNZ matches market forecasts of a 25 bps rate hike.
- 200-DMA restricts immediate downside amid sluggish Momentum line.
NZD/JPY struggles to justify the RBNZ rate hike during early Wednesday. The cross-currency pair initially jumped 40 pips on the Reserve Bank of New Zealand’s (RBNZ) rate hike announcement before attacking the intraday low surrounding 77.50, down 0.05% at the press time.
Read: NZD/USD whipsaws above 0.6950 on RBNZ rate hike
Given the quote’s inability to cross a three-week-old resistance line, coupled with the downbeat Momentum line, NZD/JPY may witness a pullback towards the 200-DMA level of 77.18.
However, any further weakness past 200-DMA will be challenged by an ascending support line from August 27, near 76.44.
During the fall, the 77.00 threshold may offer an intermediate halt whereas September’s bottom around 76.35 adds to the downside filters.
On the contrary, a daily closing beyond the stated resistance line, near 77.90 at the latest, needs validation from the recent swing high close to 78.15 before challenging the last month’s peak surrounding 78.65.
Should the NZD/JPY bulls remain dominant past 78.65, the 80.00 psychological magnet and the yearly high near 80.20 will be in the spotlight.
NZD/JPY: Daily chart
Trend: Pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
