NZD/JPY Price Analysis: Pair rises to 88.30, but bearish outlook persists
- NZD/JPY gains 0.20% on Thursday, reaching 88.35.
- Indicators found support near oversold levels, triggering a two-day winning streak.
- The 20-day and 100-day SMAs are nearing a bearish crossover around 90.00, threatening further declines.
The NZD/JPY cross continued its recovery on Thursday, rising 0.20% to 88.35 as indicators stabilized near oversold conditions. This modest rebound marks a two-day winning streak after the pair fell to the 88.00 region earlier in the week. Despite these gains, the broader outlook remains bearish, with the pair trading well below key resistance levels and moving averages.
Technical indicators signal mixed momentum. The Relative Strength Index (RSI) has edged up but remains near the oversold territory, reflecting limited upside potential. Meanwhile, the Moving Average Convergence Divergence (MACD) shows slightly improving momentum, though its position still confirms bearish pressure. Additionally, the approaching bearish crossover of the 20-day and 100-day Simple Moving Averages (SMA) near the 90.00 threshold may accelerate downward momentum.
On the upside, bulls face immediate resistance at 89.00, with the psychological 90.00 level acting as a significant barrier. Conversely, if selling resumes, the pair could revisit support in the 86.00-85.00 region, where buyers may attempt to slow the downtrend.
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.
