NZD/JPY Price Analysis: Neutral bias remains amid mixed technical signals, eyes on SMA crossover
- NZD/JPY faces mild gains, trading at 91.60.
- The short-term outlook remains neutral to bullish, with support at the 20-day SMA temporarily halting the decline.
- A breakout above 92.20 is needed to confirm the uptrend.
In Wednesday's session, the NZD/JPY pair exhibited a modest upward movement, reaching 91.60. The overall technical picture suggests a prevailing neutral to bullish bias for the short-term, due to mixed signals from technical indicators. In addition a bearish crossover between the 20, 100 and 200-day Simple Moving Averages (SMA) might also change the outlook.
The Relative Strength Index (RSI) currently stands at 58, indicating a strengthening buying pressure. The Moving Average Convergence Divergence (MACD) displays flat green bars, suggesting a neutral stance between buyers and sellers. This confluence of indicators highlights a potential shift in the balance of power, but with some evidence of buying pressure gaining momentum.
Traders should eye the 91.50 area where the 20, 100 and 200-day SMA are about to confirm a bearish crossover which might trigger a sell-off. However, the 20-day SMA proved to be a strong barrier so sellers might have a hard time breaching it.
Supports: 91.60,91.30 and 91.15
Resistances: 91.80, 92.00,92.30
NZD/JPY daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
