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.
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.
