NZD/JPY Price Analysis: Selling pressure emerges after bearish SMA crossover
|- The NZD/JPY has been trading sideways recently, showing no clear trend.
- Technical indicators suggest a growing bearish momentum, with the RSI and MACD starting to turn in favor of the sellers.
- The 100 and 200-day SMA completed a bearish crossover at 92.00.
The NZD/JPY pair has traded within a tight range recently, demonstrating a lack of clear directional momentum. However, Friday's session saw a modest decline of 0.32% to 91.00, hinting at a potential shift in sentiment.
Technical indicators align with this observation. The Relative Strength Index (RSI) of 52 suggests that buying pressure is on the wane. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram is red and rising, indicating growing bearish momentum. This divergence between the price action and technical indicators suggests that selling forces may be gaining the upper hand.
It is important to note that the 100 and 200-day Simple Moving Averages (SMAs) have converged and crossed at 92.00, forming a strong resistance level. A break below this confluence could intensify selling pressure and add further downward momentum to the pair. Conversely, a break above this key level could indicate a reversal of the current trend.
NZD/JPY daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.