The NZD/JPY currency pair saw a slight uptick of 0.15% in Monday’s trading session, closing at 89.50. However, the pair has been stuck in a sideways trend for over a week, unable to break above the resistance level of 89.80 since early August.
Technical indicators are sending mixed signals. The Relative Strength Index (RSI) has inched up to around 43, indicating a neutral market sentiment. Meanwhile, the Moving Average Convergence Divergence (MACD) is showing flat green bars, suggesting a lack of clear momentum in either direction. This lack of momentum implies that neither buyers nor sellers have a strong hold on the market.
Low trading volume further reinforces the lack of conviction in recent price movements. The NZD/JPY pair is currently trading within a range of 88.75 to 89.80. A breakout above 89.80 could indicate a bullish movement towards 90.00, while a breakdown below 88.75 could lead to further declines towards 88.00.
Analysis:
Overall, the NZD/JPY currency pair is in a consolidation phase, with technical indicators pointing to a neutral stance. Traders should exercise caution and wait for a clear breakout above 89.80 or below 88.75 before establishing new positions. The lack of momentum and low volume suggest that the pair may continue to range-bound in the near term.