NZD/JPY Price Analysis: Breaks the 200-DMA on its way towards 78.00, followed by a retracement to 77.95
|- The NZD dollar vs. the JPY finished tie week gaining 1.25%.
- NZD/JPY Technical Outlook: Neutral-upward biased, confirmed by a bullish RSI.
FInishing a busy week on the financial markets, the NZD/JPYended it on the right foot, up 1.25% in the week. Breaking news that Russia would be open to sit down and talk with the Ukrainian Government, increased appetite for riskier assets In the FX space means that risk-sensitive currencies like the NZD and the AUD rose to the detriment of safe-haven peers, like the low yielder Japanese yen. At the time of writing, the NZD/JPY is trading at 77.95.
Friday’s overnight session for North American traders portrayed an upbeat market sentiment, despite the continuation of Russia’s invasion of Ukraine, announced by Russian President Vladimir Putin. In the Asian session, the NZD/JPY was subdued in the 77.20-50 range. However, in the middle of the European session, earlier of New York’s open, the NZD/JPY pair moved upwards, rallying 44-pips, setting Friday’s daily high at78.01.
NZD/JPY Price Forecast: Technical outlook
The NZD/JPY began the North American session, confined between the 50 and the 200-day moving (DMA), lying at 77.26 and 77.89, respectively but late in the New York session, rallied toward 78.00, backtracking to current levels. Based on that, the pair is neutral biased, but the Relative Strength Index (RSI) at 58.50 above the 50-midline and aiming higher indicates the NZD/JPY is bullish biased with enough room before reaching overbought levels. That said, the NZD/JPY is neutral-upward bias.
Upwards, the NZDY/JPY first resistance would be 78.00. Breach of the latter would pave the way towards the 100-DMA at 78.34, followed by January 13 daily high at 78.83.
On the flip side, the NZD/JPY first support would be the 200-DMA at 77.89. Once cleared, the next support would be 50-DMA at 77.26, followed by the 77.00 mark.
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