NZD/JPY surges to multi-year highs around 91.35, bulls take control
- NZD/JPY rallied more than 0.70% to hit 91.38, its highest since April 2015.
- Daily RSI and MACD show good upward momentum, hinting at increasing buying pressure.
- Indicators near overbought conditions in the four-hour chart.
In Thursday's session, the NZD/JPY initiated a bullish move, touching a peak of 91.38, it highest since April 2015. This positive momentum echoed in the daily and four-hour charts and signals that bulls are in command over the bears while steering the pair into overbought conditions. The overall scenario suggests a continuing bullish bias for the short-term.
In line with that, the positive slope of the daily Relative Strength Index (RSI), positioned in positive territory pointing north, signifies a potent bullish dominance. Simultaneously, the Moving Average Convergence Divergence (MACD) corresponds to rising green bars, contributing to the buying dominance. Moreover, on a broader scale, the pair is above its three key Simple Moving Averages (SMAs). Its position over the 20, 100, and 200-day SMAs provides additional confirmation that the bulls are firmly in control.
Switching to the shorter-term chart, the four-hour metrics reiterate the dominance of the bullish scenario. The uptrend in the Relative Strength Index (RSI) on the four-hour chart, remaining in positive territory, cements the assertion of bullish control. Furthermore, the rising green bars of the four-hour Moving Average Convergence Divergence (MACD) embody an increasing bullish sentiment in the short term.
Support Levels: 89.85 (20-day SMA), 89.30, 89.00.
Resistance Levels: 91.38, 91.50, 91.70.
NZD/JPY daily chart
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Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
