NZD/JPY Price Analysis: Seesaws in a 130-pip range, stabilized above the 50-DMA at 77.30
|- The NZD dollar vs. the JPY is set to end tie week with gains, so far up 0.40%.
- Thursday’s North American session ended in the green, depicting a risk-on market mood.
- NZD/JPY Technical Outlook: Neutral-upward biased, confirmed by a bullish RSI.
On Thursday, the New Zealand dollar felt the weight of being a risk-sensitive currency greatly influenced by market sentiment guided by headlines of the Russian invasion of Ukraine, which kept investors on their toes, triggering a risk-off mood. However, once US President Biden enforced a new tranche of rigid sanctions on Russia, the market mood improved, and the pair recovered half of its earlier losses. So far, the NZD/JPY is trading at 77.30.
Thursday’s overnight session for North American traders portrayed a risk-off market mood as Russia’s commenced the invasion of Ukraine, announced by Russian President Vladimir Putin. The NZD/JPY pair dropped 130-pips sharply, from 77.88 to February’s 24 daily low at 76.63. Nonetheless, late in the North American session, US President Joe Biden announced new sanctions on Russia, which improved market sentiment through the end of Wall Street.
NZD/JPY Price Forecast: Technical outlook
The NZD/JPY ended the North American session, confined between the 50 and the 200-day moving (DMA), lying at 77.26 and 77.89, respectively. Furthermore, the Relative Strength Index (RSI) at 53.37 above the 50-midline and aiming higher signals the NZD/JPY as 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 the 200-DMA at 77.89. Breach of the latter would pave the way towards the 100-DMA at 78.34, but firstly, the NZD/JPY pair would need to clear 78.00.
On the flip side, the NZD/JPY first support would be the 50-DMA at 77.26. Once cleared, the next support would be 77.00, followed by February 24 daily low at 76.63.
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