The NZD/JPY cross’s bullish run has continued, with the pair reaching fresh highs above 98.00, marking its highest position since 2007. The 20-day Simple Moving Average (SMA) has provided strong support at 96.90, affirming the robust bullish outlook. Despite the positive momentum, there are signs of potential consolidation on the horizon.
The Relative Strength Index (RSI) on the daily chart for NZD/JPY has entered the overbought territory at 68, indicating a sustained bullish trend. However, the Moving Average Convergence Divergence (MACD) is not showing green bars, suggesting a potential loss of momentum among buyers. This divergence in indicators could indicate a need for a healthy correction in the near future.
Market participants are closely monitoring key levels for NZD/JPY, with immediate support at 97.00 and additional support at 96.90 near the 20-day SMA and previous low of 95.00. Resistance targets are set at 98.50 and 99.00, with a decisive breakthrough above the current range confirming further upside potential. Conversely, a drop below the 20-day SMA could signal a more significant correction in the pair.
Overall, the bullish momentum for NZD/JPY remains strong as the pair continues to surge to new highs. While overbought conditions and divergence in indicators may suggest a potential correction, the pair’s upward trajectory is supported by the 20-day SMA and key resistance levels. Traders will be watching closely for any signs of a consolidation or reversal in the near future.
