The NZD/JPY pair closed Thursday’s trading session with a significant decline, dropping by 1.40% to 96.80. This bearish movement saw the pair fall below the crucial 20-day Simple Moving Average (SMA) of 97.70, signaling a shift in command and a negative outlook in the short-term. The Relative Strength Index (RSI) on the daily chart also dropped to 44, indicating a decrease in market momentum. Furthermore, the Moving Average Convergence Divergence (MACD) confirmed this bearish scenario with rising red bars pointing to decreased buying momentum.
Looking ahead, immediate support levels for NZD/JPY are set at 96.50, 96.00, and 95.00. On the other hand, resistance levels are likely to be encountered at 97.00, 97.70 (20-day SMA), and 98.00. Traders and investors should keep a close eye on these levels as they could indicate potential price movements in the near future.
It is important to note that the shift in command for NZD/JPY suggests that the bears are currently in control of the market. As such, traders should exercise caution and closely monitor key support and resistance levels to gauge the direction of the pair. Any further downward movement could see the pair testing lower support levels, while a reversal could see a potential move towards resistance levels.
In conclusion, the NZD/JPY pair experienced a significant decline in Thursday’s session, breaking below the 20-day SMA and signaling a bearish outlook in the short-term. With the RSI and MACD both indicating a decrease in market momentum, traders should be prepared for potential price movements and closely monitor support and resistance levels. By staying informed and vigilant, traders can make informed decisions and adapt to changing market conditions.