The NZD/JPY Pair: A Technical Analysis
Overview
The NZD/JPY pair, after a slight drop on Wednesday, is consolidating above the key psychological level of 90.00. The market is currently being controlled by bulls, as indicated by the technical indicators pointing towards a bullish outlook.
Technical Indicators
- RSI: The Relative Strength Index (RSI) is holding near 60, suggesting that bullish momentum is still present.
- MACD: The Moving Average Convergence Divergence (MACD) is flat, indicating a potential flattening of buying pressure.
Potential Breakout
The bulls have set their sights on a breakout above the resistance level at 91.00, which could potentially lead to further gains for the pair.
Short-Term Outlook
After a seven-day winning streak in mid-September, the NZD/JPY pair remains positioned above the 20-day Simple Moving Average (SMA). With buying pressure showing signs of weakening, support levels can be found at 90.00, 89.30, and 89.00, while resistance levels are at 90.50, 90.80, and 91.00.
NZD/JPY Daily Chart
Analysis
The NZD/JPY pair is currently in a consolidation phase above the key level of 90.00, with bulls maintaining control of the market. The technical indicators, specifically the RSI and MACD, provide insight into the current momentum and buying pressure in the market. The potential breakout above 91.00 could lead to further gains for the pair.
For traders and investors, understanding these technical indicators and levels of support and resistance can help in making informed decisions when trading the NZD/JPY pair. It is important to monitor the price action and key levels mentioned to gauge the strength of the bullish momentum and potential for a breakout.