NZD/JPY Price Analysis: Neutral momentum persists, with potential bullish bias

NZD/JPY advanced by 0.15% in Monday's session, landing at 89.50.
The RSI has climbed near the neutral zone while the MACD remains flat, suggesting a lack of clear momentum.
The pair is trading within a range of 88.75 and 89.80; a breakout from either boundary could signal further directional movement.

Patricio Martín FXStreet

The NZD/JPY currency pair has experienced sideways trading for over a week, with Monday's session witnessing a modest gain of 0.15%, settling at 89.50. The pair has been unable to break above the resistance level of 89.80 since the beginning of August.

Technical indicators paint a mixed picture. The Relative Strength Index (RSI) has rebounded slightly and is currently hovering around 43, indicating neutral market sentiment. The Moving Average Convergence Divergence (MACD), a momentum indicator, is printing flat green bars, suggesting that there is no clear momentum in either direction. This neutral stance implies that neither the bulls nor the bears are holding a significant advantage.

Volume has been consistently low, indicating a lack of conviction in the recent price movements. The pair is currently trading within a range between 88.75 and 89.80. A break below could lead to further declines towards 88.00, while a break above could push the pair up to 90.00.

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.

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