NZD/JPY Price Analysis: Pair plunges to multi-month low before partial rebound

NZD/JPY declines 0.99% on Monday, settling at 86.55 after hitting its lowest level since August 2024.
The pair briefly dropped to 85.70 before bouncing back around 87.00, though it remains below the 20-day SMA at 88.00.

Patricio Martín FXStreet

The NZD/JPY pair saw heightened volatility on Monday, plunging to a fresh multi-month low of 85.70 before staging a partial recovery to close at 86.55. Despite the rebound, the broader outlook remains bearish, as the pair continues to struggle below key resistance levels, with the 20-day Simple Moving Average (SMA) at 88.00 acting as a cap.

Technical indicators suggest mixed signals regarding momentum. The Relative Strength Index (RSI) remains flat at 41 in negative territory, signaling persistent selling pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram is printing rising red bars, which further supports the bearish thesis.

Looking ahead, the pair faces immediate resistance at 87.00, and a sustained break above this level could pave the way for a move toward the 20-day SMA at 88.00. On the downside, renewed selling could push the pair back toward 85.70, with further losses potentially targeting 85.30. As long as NZD/JPY remains below the 20-day SMA, the outlook remains tilted to the downside.

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.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.