NZD/JPY price analysis: Pair extends gains above 20-day SMA
- NZD/JPY inches higher on Friday, touching 88.90 and holding recent upside momentum.
- MACD bars remain green but have flattened, signaling cautious optimism amid lingering downside risks.
- RSI moves up to 51, entering positive territory as buyers tentatively return.
NZD/JPY added a modest 0.20% on Friday, climbing to 88.90 and building on the gains seen since the pair broke above its 20-day Simple Moving Average (SMA). This move comes after a notable loss of ground prompted by a breakout from a sideways trading range between 90.00 and 92.00, underscoring the pair’s ongoing effort to regain its footing.
Under the hood, the Relative Strength Index (RSI) has shifted to 51, sitting just inside the positive zone and hinting at a mild uptick in buying interest. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram remains above zero but has flattened out, suggesting that bullish momentum may need a further push to gain traction.
Looking ahead, a firm close above the 20-day SMA could help solidify the recovery, potentially targeting resistance points closer to 90.00. Should the pair slip back below this moving average, however, NZD/JPY could once again be vulnerable to renewed selling pressure.
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.
