NZD/JPY Price Analysis: Sideways consolidation persists, bears to stay cautious
- NZD/JPY gained ground on Friday's session, mildly to 89.95.
- The RSI holds near neutral territory, indicating a balance between buying and selling forces.
- The MACD shows flat green bars, suggesting that momentum is stabilizing.
The NZD/JPY currency pair is consolidating sideways within a familiar range below 90.00. Technical indicators display mixed signals, with the Relative Strength Index (RSI) hinting at neutral sentiment and the Moving Average Convergence Divergence (MACD) showcasing a stabilizing momentum.
The RSI, reflecting the momentum of price changes, currently sits just below 50. This reading suggests that neither buyers nor sellers have a clear advantage in the market, resulting in a balanced sentiment. Meanwhile, the MACD, a trend-following indicator, is showing flat green bars, indicating that the bullish momentum is neither gaining nor losing strength.
The pair has been hovering within a trading range defined by the 89.00 support and 90.20 resistance levels. Volume has been relatively low, indicating a lack of decisive buying or selling pressure. A break above 90.20 could signal a potential bullish continuation, opening the way towards 90.50 and 91.00. Conversely, a break below 89.00 could trigger a bearish move towards 88.50 and 88.00.
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.
