NZD/JPY Price Analysis: Pair rebounds but struggles to gain traction
- NZD/JPY edged higher to 88.15 on Tuesday after recovering from early weakness.
- RSI shows a sharp rise but remains in negative territory, indicating hesitant bullish momentum.
- MACD signals waning buying interest, with green bars decreasing as volatility persists.
The NZD/JPY pair posted a modest gain on Tuesday, rising to 88.15 after earlier fluctuations. The pair experienced an initial dip to 87.55 but managed to recover, showing resilience despite broader bearish pressures. However, the broader outlook remains mixed as the pair struggles to establish a clear directional bias.
Technical indicators provide contrasting signals. The Relative Strength Index (RSI) has risen to 47, signaling some recovery in momentum but remaining in negative territory, which underscores the tentative nature of the rebound. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram continues to print decreasing green bars, suggesting waning buying interest and the potential for further downside risks.
Immediate support is seen at 87.55, with a breach likely exposing the pair to further losses toward the 87.00 handle. On the upside, resistance lies at 88.20, which aligns with the 20-day SMA. A sustained break above this threshold would be needed to confirm a more bullish short-term outlook.
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.
