NZD/JPY Price Analysis: Bullish momentum fading, downside risk emerging
- NZD/JPY has been in a sideways movement for the past few sessions, with sharp losses in Tuesday's session.
- RSI is declining sharply, MACD histogram is green and decreasing, suggesting that buying pressure is declining.
- A breakdown below 90.00 could confirm further downside potential.
The NZD/JPY pair declined by 0.60% to 90.70 in Tuesday's session and threatens with a reversal in the recent bullish movements.
The daily Relative Strength Index (RSI) is currently at around 52, indicating that the pair is in the positive area. However, the RSI is declining sharply, suggesting that buying pressure is declining. The Moving Average Convergence Divergence (MACD) histogram is green and decreasing, suggesting that buying pressure is declining. The MACD histogram direction is green and decreasing, confirming the bearish momentum.
The 90.00 level is crucial for the pair’s near-term outlook. A breakdown below this support could open the door to additional losses, potentially targeting the next psychological support at 89.50. However, if the pair finds support above this level and buyers step in, a reversal could occur, targeting resistances at 91.00 and potentially 92.00, where the 20, 100, and 200-day simple moving averages converge.
NZD/JPY daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
