NZD/JPY puts brakes on bears, bulls need more to control short-term trend

NZD/JPY powers to 89.465, logging a noticeable 0.80% rally.
Daily chart indicators reveal steady buying momentum - RSI's positive tilt and MACD's red bars lessening show bearish exhaustion.
Given the pair's positioning between the 20-day SMA and longer-term SMAs, buyers appear in control.

Patricio Martín FXStreet

In Monday's session, NZD/JPY is viewed at 89.465, following a subtle 0.80% upward rally. Recently on the daily chart, the bears have paused, giving a neutral to bearish outlook, highlighted by rejection at the 100-day SMA. Shifting the focus to the four-hour chart, bulls have pushed forward, gaining notable traction and currently consolidating these advances.

From a technical perspective, the daily indicators show a slight inclination towards a bullish scenario for the short-term as the bears seem to be taking a breather. The rising trend of the Relative Strength Index (RSI) in the negative terrain suggests that momentum is gradually shifting to the upside, even though it remains in the bear's dominion. Simultaneously, the red bars of the Moving Average Convergence Divergence (MACD) histogram are lessening, which signifies dwindling bearish momentum.

Moreover, the pair's position under the 20-day Simple Moving Average (SMA) shows a latent bearish inclination in the short term, yet its stronghold above the 100-day and 200-day SMAs displays bullish control in the broader time horizon. In addition, the recent rejection at the 100-day SMA indicates that bears are currently on a short pause.

Shifting focus to the short time frame, the four-hour chart's indicators present a different picture. The Relative Strength Index (RSI) has plateaued in the positive area, and the red bars of the Moving Average Convergence Divergence (MACD) histogram are contracting, indicating an ongoing consolidation phase after the bulls witnessed a significant surge. This signifies that the buying momentum has slowed down, and the market participants are possibly biding time before determining the next direction.

Support Levels: 88.70, 88.15 (100-day SMA), 87.70.
Resistance Levels: 89.80, 90.00 (20-day SMA), 90.30.

NZD/JPY daily chart

NZD/JPY

Overview
Today last price	89.46
Today Daily Change	0.71
Today Daily Change %	0.80
Today daily open	88.75

Trends
Daily SMA20	90.19
Daily SMA50	89.16
Daily SMA100	88.18
Daily SMA200	86.59

Levels
Previous Daily High	89.02
Previous Daily Low	87.97
Previous Weekly High	91.16
Previous Weekly Low	87.69
Previous Monthly High	91.38
Previous Monthly Low	87.56
Daily Fibonacci 38.2%	88.62
Daily Fibonacci 61.8%	88.37
Daily Pivot Point S1	88.14
Daily Pivot Point S2	87.54
Daily Pivot Point S3	87.1
Daily Pivot Point R1	89.19
Daily Pivot Point R2	89.62
Daily Pivot Point R3	90.23

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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