NZD/JPY Price Analysis: Kiwi rebounds from 20-day SMA, yet consolidation looms

The Kiwi retakes control against the Yen on Wednesday, bouncing off the 20-day SMA and surging towards 96.75.
Despite the buyers' push, the pair is likely bound to a consolidation period.
The established fortification around the 20-day SMA serves as a guard against further declines.

Patricio Martín FXStreet

On Wednesday, the NZD/JPY pair saw a formidable rebound from the 20-day Simple Moving Average (SMA) at 95.50, launching upward towards 96.75. But despite the buyers' effort, it appears that the pair is firmly locked within a consolidation phase, limiting the chances of a quick overrunning of the multi-year high at around 97.00.

The Relative Strength Index (RSI) on the daily chart, currently at 64, has navigated upward from Tuesday's modest reading of 54, indicating a positive momentum shift. Now residing comfortably in the positive territory, this demonstrates an uptick in buying pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) continues to print flat red bars, suggesting moderating selling momentum and reinforcing the likelihood of a continuation of the consolidation period rather than a full reversal.

NZD/JPY daily chart

While buyers displayed renewed energy, the consolidation phase established after the impressive sprint from near 91.00 to 96.00 in May seems to hold sway. This likely indicates that the bullish contingent may need a breather before mounting further upward movements.

For buyers to reaffirm their hold, they would need to overcome the 97.00 resistance, opening the gates for another ascension towards new highs. However, until such a rally materializes, the pair may continue to tread water as it digests the recent spike in buying pressure.

NZD/JPY

Overview
Today last price	96.63
Today Daily Change	0.97
Today Daily Change %	1.01
Today daily open	95.66

Trends
Daily SMA20	95.34
Daily SMA50	93.11
Daily SMA100	92.13
Daily SMA200	90.53

Levels
Previous Daily High	96.86
Previous Daily Low	95.27
Previous Weekly High	96.74
Previous Weekly Low	95.43
Previous Monthly High	96.74
Previous Monthly Low	90.83
Daily Fibonacci 38.2%	95.87
Daily Fibonacci 61.8%	96.25
Daily Pivot Point S1	95
Daily Pivot Point S2	94.33
Daily Pivot Point S3	93.4
Daily Pivot Point R1	96.59
Daily Pivot Point R2	97.52
Daily Pivot Point R3	98.18

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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