NZD/JPY Price Analysis: Pair stabilizes but remains below key resistance
- NZD/JPY rises 0.18% on Monday, trading near 85.75 after recent losses.
- Technical indicators point to a fragile recovery, with momentum still favoring the downside.
- The pair remains well below the 20-day SMA at 87.50, limiting upside potential.
The NZD/JPY pair edged higher on Monday, gaining 0.15% to trade around 85.75, but its broader bearish trend remains intact. Despite the mild rebound, the pair continues to struggle below key resistance levels, with sellers keeping control in the bigger picture.
Technical readings suggest a tentative recovery but with downside risks still present. The Relative Strength Index (RSI) has risen to 36, indicating a slight improvement in buying interest, though it remains in negative territory. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram is printing rising red bars, reinforcing that bearish momentum is not yet fully exhausted.
For the pair to establish a more constructive outlook, a move above the 20-day SMA at 87.50 is required. Until that happens, sellers may look to challenge immediate support at 85.30, with a potential move toward 84.80 if bearish pressure intensifies.
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.
