NZD/JPY Price Analysis: Pair continues consolidating below 90, signs of momentum building
- NZD/JPY mildly rose on Thursday, trading at 89.70.
- The RSI is showing a rising tendency, indicating potential buying pressure, still below 50.
- The MACD continues to print flat green bars, suggesting a neutral trend.
The NZD/JPY currency pair is trading sideways within a neutral consolidation. Technical indicators display contrasting signals, with the Relative Strength Index (RSI) hinting at buying pressure and the Moving Average Convergence Divergence (MACD) showcasing a neutral trend.
The RSI, a measure of momentum, has been rising lately and is currently at 47, near the neutral territory. This suggests that buying pressure may be building, signaling a potential shift in market sentiment. However, the MACD, continues to show flat green bars, indicating that the upward momentum is not yet strong enough to trigger a trend reversal.
The pair has been consolidating within a range defined by the 89.50 support and 90.00 resistance levels. Volume has been relatively low, indicating a lack of conviction in the recent price movements. A break above 90.00 could signal a potential bullish trend reversal, pushing the pair up to 91.00 and 91.50, while a break below 89.50 could lead to further declines towards 86.00 and possibly 84.50.
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.
