NZD/JPY retreats from multi-year highs, further consolidation incoming

The NZD/JPY declined to 90.00, seeing 1.20% losses and clearing most of Wednesday’s losses.
Investors are taking profits after hitting highs since 2015.
Indicators still suggest that the bulls are in command, but in the short-term, it could correct further.

Patricio Martín FXStreet

The NZD/JPY sharply declined in Thursday’s session, seeing more than 1% losses and trimming all of Wednesday’s gains as the cross consolidated the rally which took it to a multi-year high of 91.20.

In that sense, according to the daily chart, the NZD/JPY has a neutral to bullish technical outlook, with indicators signalling a short-term pause in the bulls' upward after hitting overbought conditions and the Relative Strength Index (RSI) exhibits a negative slope still above its midline, while the Moving Average Convergence (MACD) presents lower green bars. In line with that, the cross trades above the 20,100,200-day Simple Moving Average (SMAs) suggest that the bulls are in command over the sellers in the larger context.

In the four-hour chart, indicators are tilting in favour of the bears, with the RSI and MACD standing in negative territory, suggesting that the cross may face further consolidation in the near term.

Support levels: 89.25, 89.00, 88.60 (20-day SMA).
Resistance levels: 90.00, 90.30, 91.20.

NZD/JPY daily chart

NZD/JPY

Overview
Today last price	89.98
Today Daily Change	-1.16
Today Daily Change %	-1.27
Today daily open	91.14

Trends
Daily SMA20	88.53
Daily SMA50	88.34
Daily SMA100	87.82
Daily SMA200	86.06

Levels
Previous Daily High	91.2
Previous Daily Low	90.21
Previous Weekly High	89.86
Previous Weekly Low	88.93
Previous Monthly High	89.93
Previous Monthly Low	86.78
Daily Fibonacci 38.2%	90.82
Daily Fibonacci 61.8%	90.59
Daily Pivot Point S1	90.5
Daily Pivot Point S2	89.87
Daily Pivot Point S3	89.52
Daily Pivot Point R1	91.49
Daily Pivot Point R2	91.84
Daily Pivot Point R3	92.47

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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