NZD/JPY Price Analysis: Pair edges lower amid fading bullish momentum
- NZD/JPY slips to 88.45 on Thursday, marking a continuation of its recent decline.
- Momentum weakens as the pair fails to extend gains from earlier in the week.
- Market sentiment remains cautious, with the pair trading near short-term support levels.
The NZD/JPY pair edged lower on Thursday, closing at 88.45, as the recent decline extended into another session. The pair’s inability to sustain its earlier upward trajectory suggests waning bullish momentum, keeping traders cautious about further upside potential. While the broader trend remains mildly positive, the latest moves point to a more balanced market dynamic.
Technical indicators offer a mixed picture. The Relative Strength Index (RSI) stands at 53, remaining in positive territory but showing a mild decline, indicating reduced buying interest. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram remains flat with green bars, signaling a lack of strong directional momentum. Together, these readings suggest that the pair may struggle to regain its footing without a significant catalyst.
For now, support is seen around the 88.20 level around the 20-day Simple Moving Average (SMA), with a break below this potentially opening the door to 88.00 or lower. On the upside, resistance at 88.75 will be key, and a sustained push above this level could signal renewed bullish interest, targeting the 89.00 psychological mark as the next hurdle.
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.
