NZD/JPY Price Analysis: Bullish momentum resumes after sideways consolidation
- NZD/JPY has dropped to 91.50 in Tuesday's session, signaling a mild bearish turn.
- Technical indicators show a neutral outlook, with the RSI starting to slow down but remaining in positive territory.
NZD/JPY has reversed its upward trajectory after a period of sideways consolidation. In Tuesday's session, the pair declined mildly to 91.50, suggesting a potential shift in market sentiment. However, its unlikely that Tuesday’s movements are a trend shift as the pair continues stuck between the 20-day Simple Moving Average and the 92.00 threshold.
The Relative Strength Index (RSI) has slid from 57, indicating that buying pressure is decreasing. Meanwhile the MACD is showing flat momentum with a neutral histogram and a declining signal line. This change in the signal line could point a potential bearish momentum in the price.
The pair has been trading sideways over the past sessions, within a narrow range defined by support at around 90.70 (20-day SMA) and resistance at 92.20.The 20-day SMA serves as a critical support level that could trigger stronger selling pressure if breached while the 100 and 200-day SMA convergence around 92.00 is the resistances to be breached which could improve the outlook.
NZD/JPY daily chart
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