NZD/JPY Price Analysis: Pair Steadies with Bullish Tone Ahead of Asian Session

NZD/JPY trades near the 87.50 zone, maintaining a bullish tone.
Momentum remains positive, supported by short-term averages.
Key support sits around 86.90, with resistance near 87.95.

Patricio Martín FXStreet

The NZD/JPY pair has seen a strong upside push, trading near the 87.50 zone with around 0.80% gains ahead of the Asian session on Tuesday. The pair is positioned mid-range within its recent fluctuation, reflecting a steady bullish tone as traders assess broader risk sentiment. Key technical indicators are signaling mixed but generally positive momentum, adding to the overall buy sentiment.

Technically, the pair shows a bullish outlook, supported by the Moving Average Convergence Divergence (MACD), which confirms upward momentum, and the Relative Strength Index (RSI), hovering in the 60s, reflecting neutral but slightly supportive conditions. Meanwhile, the Stochastic %K (14, 3, 3) remains in the 80s, also hinting at neutral bias, while the Commodity Channel Index (CCI) around the 190s and the Ultimate Oscillator (7, 14, 28) in the 50s add further stability to the pair's stance.

In terms of moving averages, the shorter-term 10-day Simple Moving Average (SMA) and 10-day Exponential Moving Average (EMA) both align with the broader buy signal, reinforcing the positive tone seen in the 20-day and 100-day SMAs. However, the longer-term 200-day SMA presents a contrasting signal, suggesting caution over the medium term.

Immediate support is identified around 86.90, followed by deeper levels at 86.23 and 86.15. On the upside, resistance is likely near 87.64, with a stronger barrier around 87.96, which could limit further gains in the near term.

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.