NZD/JPY Price Analysis: Sellers rule the roost, additional retracements may be on the horizon
- Bulls failed to maintain their momentum and gave up daily gains.
- The daily RSI remains in negative zone, underscoring the current bearish momentum.
- On the hourly chart, indicators further uphold the short-term bearish bias.
In Thursday's session, the NZD/JPY pair is trading with a mild loss and is currently pegged at 90.79 after peaking at a high of 91.21. Sell-offs dominate the market landscape in the short term and buyers are failing to gather additional momentum.
Based on the indicators of the daily chart, the Relative Strength Index (RSI) currently resides in negative territory, indicating bearish momentum. The RSI has witnessed a minor decline from the previous day's level, representing slightly increased bearish sentiment. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram exhibits flat red bars, suggesting that the bears have gone nowhere while the bulls remain on the sidelines..
NZD/JPY daily chart
Turning to the hourly chart, the RSI pair also operates within the negative territory, signaling the prevalence of short-term sellers in the market. The MACD histogram here too presents flat red bars, sustaining the bearish momentum on a shorter timeframe.
NZD/JPY hourly chart
Despite the pair being below the 20-day Simple Moving Average (SMA), it remains above its 100 and 200-day SMAs, suggesting the overall trend remains bullish. However, the bearish indications from both the daily and hourly charts suggest potential retracements before a continuation of the bullish trend.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
