NZD/JPY Price Analysis: Bears gain ground, cross treads closely to the 20-day SMA
- Yen leverages strength against the Kiwi on Tuesday, pushing the NZD/JPY pair closer to the 20-day SMA.
- Sellers face growing momentum, but significant support at 96.30 remains unchallenged.
- The pair might have entered in a consolidation period after hitting multi-year highs.
On Tuesday, the NZD/JPY pair encountered sustained selling pressure as the Japanese Yen powered upwards against its rivals. Despite the sellers' incessant attempts, the critical support level at 95.30 remains strong which preserves an overall bullish outlook.
The Relative Strength Index (RSI) on the daily chart, currently at 54, shaved off the overbought status it held in Monday's session at 71, indicating a rapid negative momentum shift. Despite this, the RSI still comfortably sits in neutral territory, reflecting the subdued yet persistent bullish sentiment driving the pair. The Moving Average Convergence Divergence (MACD) continues to print rising red bars, suggesting an increase in selling momentum.
NZD/JPY daily chart
The NZD/JPY pair's encounter with the 20-day Simple Moving Average (SMA) at 95.30, showed that the buyers remain resilient and that the pair's outlook remains bullish. In case of losing it, the pair have additional supports which may limit losses at 95.00 and 94.00. As long as the cross holds above these levels, the overall outlook will be positive.