NZD/JPY Price Analysis: Range-bound trading persists, 20-day SMA remains strong
- NZD/JPY sees modest gains on the day, and buying pressure rises somewhat.
- The uptrend momentum is capped by flat selling pressure, leading to neutral momentum.
- The 20-day SMA remains a crucial support level with bears unable to breach it.
In Tuesday's trading session, the NZD/JPY pair has risen by 0.20% to 90.95, reflecting a slight bullish sentiment on the session. On the bigger picture, the pair continues to trade within a narrow range, with buyers and sellers in a tussle for dominance.
Technical indicators provide a mixed outlook for NZD/JPY. The Relative Strength Index (RSI) for NZD/JPY has mildly climbed to 54, indicating a positive buying trend that is growing in strength. This suggests that buyers are regaining momentum and may push the pair higher.
On the other hand, the Moving Average Convergence Divergence (MACD) histogram remains flat and red, showing that selling pressure is currently weak but persistent. Due to the opposing signals from the RSI and the MACD, the pair's momentum can be considered neutral for now.
The key support and resistance levels remain unchanged, with support at 90.65, 90.95, and 91.15, and resistance at 91.35, 92.00, and 92.15. These price level are set to play a pivotal role in determining the pair's future direction. The 20-day SMA, a pivotal support level, has been instrumental in preventing the pair's slide and will likely continue to do so in the near term.
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.
