NZD/JPY Price Analysis: Seesaws around 76.28 post-Fed monetary policy meeting
- On Wednesday, the NZD/JPY clings to its gains, up some 0.10%, amid a risk-off environment.
- A risk-off market mood triggered an equities sell-off in the US stock market, influencing risk-sensitive FX currencies, like the NZD.
- The NZD/JPY is downward biased though a break above 77.00 would expose crucial DMAs.
The NZD/JPY edges up in the session, after Wall Street closed, gains some 0.22% after the Federal Reserve unveiled its monetary policy statement. At the time of writing, the NZD/JPY is trading at 76.20.
In the meantime, the risk sentiment got a toll after Fed’s Chairman Jerome Powell press conference, as shown by the NZD/JPY hourly chart, which depicts the pair slumped 60-pips.
However, in the aftermath of the press conference, the cross-currency pair trimmed some of its losses, trading at 76.20
NZD/JPY Price Forecast: Technical outlook
The NZD/JPY is downward biased per the daily chart. Nevertheless, JPY bulls have been unable to print a daily close below December 3, 2021, daily low at 75.96. The 50-day moving average (DMA) resides at 77.64, some 40-pips below the 200-DMA at 78.09, which is trapped between the former and the 100-DMA at 78.48.
That said, the NZD/JPY first support would be 76.00. A breach of the latter would expose the January 24 swing low at 75,74. If that level is broken, the next stop for the cross-currency would be July 20, 2021, pivot low at 75.27, and then August 19, 2021, low at 74.56.
Contrarily, the NZD/JPY first resistance would be January 26 daily high at 76.66. A daily close above that level would send the pair rallying towards January 21 daily high at 77.05, and then the 50-DMA at 77.64.
Author
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
