- An upbeat sentiment bolstered the New Zeland Dollar to fresh yearly highs vs. the Japanese Yen.
- NZD/JPY: A decisive break above 87.93 could open the door above 88.00; otherwise, a fall towards 87.00 is likely.
The New Zealand Dollar (NZD) reached a fresh 52-week high around 87.93 during Monday’s trading session, courtesy of a risk-on impulse, which bolstered risk-perceived currencies to the detriment of the Japanese Yen (JPY). At the time of writing, the NZD/JPY is trading at 87.80.
NZD/JPY Price Analysis: Technical outlook
The NZD/JPY hit a fresh YTD high of 87.93 on Monday, invalidating a previous double-top formation that emerged in November 2022. The cross-currency pair remains upward biased, though the Relative Strength Index (RSI) at bullish territory turned flat, while the Rate of Change (RoC) depicts buyers losing momentum.
In the near term, the NZD/JPY 1-hour chart illustrates the pair is upward biased, though a negative divergence between price action and the Relative Strength Index (RSI) suggests sellers are moving in. Additionally, the Rate of Change (RoC) shows that buying pressure is fading. Hence, the NZD/JPY first support would be the daily pivot point at 87.69. A breach of the latter will expose the intersection of the S1 pivot point and the 50-Exponential Moving Average (EMA) at 87.44, followed by the 100-EMA at 87.19 and the S2 pivot point at 87.04.
NZD/JPY Key Technical Levels
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