Breaking Down the Latest NZD/JPY Price Action
The NZD/JPY pair has shown a reversal of last week’s losses, with a notable extension of gains in Tuesday’s session. Let’s dive into the technical indicators to understand what this means for traders:
RSI Analysis
- The Relative Strength Index (RSI) is currently at 45, indicating a negative area.
- The sharp rise in the RSI slope suggests that buying pressure is recovering.
MACD Analysis
- Decreasing red bars in the Moving Average Convergence Divergence (MACD) signal that selling pressure is weakening.
- Although the MACD is still red, the histogram is on a downward trend, indicating a decline in selling pressure.
With these technical indicators in mind, it appears that the NZD/JPY pair may continue to consolidate in the short term following the recent sharp losses.
Key Levels to Watch
Support levels to keep an eye on are at 86.50, 86.30, and 86.00, while resistances can be found at 87.50, 87.70, and 88.00. Traders should pay close attention to a potential breakout above 88.50 or below 86.50 to confirm a new trend direction.
Stay informed and make strategic decisions based on these key technical insights.
Analysis:
The NZD/JPY pair’s recent price action indicates a shift in momentum, with buying pressure starting to recover and selling pressure weakening. This suggests a possible consolidation phase in the short term. Traders should closely monitor key support and resistance levels to identify potential breakout opportunities. By understanding and utilizing these technical indicators effectively, investors can make informed decisions to optimize their trading strategies and capitalize on market movements.