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.

Patricio Martín FXStreet

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.

GBP/USD weakens below 1.3450 as US-Iran uncertainty boosts safe-haven US Dollar

The GBP/USD pair loses ground to near 1.3425 during the early Asian session on Tuesday. Uncertainty surrounding US-Iran talks drives traders toward a safe-haven currency such as the US Dollar against the British Pound. All eyes will be on the US July jobs data, which is due later on Friday.

EUR/USD flatlines above 1.1500 as traders turn cautious ahead of US NFP data

The EUR/USD pair holds steady around 1.1505 during the early European trading hours. Markets remain cautious ahead of the crucial US July jobs report, which is due later this week. Eurozone inflation ticked up in July, bolstering the case for a rate hike from the European Central Bank. The headline Eurozone inflation rose to 2.9% YoY in July from 2.8% in June, in line with expectations.

Gold consolidates above $4,050 amid Fed hike bets and Iran uncertainty

Gold seesaws between tepid gains and minor losses during the Asian session as traders seem hesitant and opt to wait for further developments surrounding the Middle East crisis. The US Dollar struggles to build on the previous day's solid bounce from the lowest level since Mid-June and acts as a tailwind for the bullion. However, the uncertainty over US-Iran peace talks helps limit the downside for the buck.

Ripple and Stellar steady as derivatives data points to easing downside pressure

Ripple and Stellar show mixed price action, with XRP holding above the key $1 support zone while XLM faces rejection at $0.173. Meanwhile, improving derivatives metrics alongside fading bearish momentum suggest that the downside pressure may be easing for both altcoins. Derivatives data shows mild bullish sentiment among traders.

NFP week: What awaits Bitcoin and Gold

This is an NFP week as markets brace for the release of a large influx of job market statistics. The data rollout begins with the JOLTS Job Openings report on Tuesday, continues with the ADP Employment report on Wednesday and Jobless claims on Thursday, and finishes with the Nonfarm Payrolls report on Friday.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.