The New Zealand Dollar (NZD) has been showing further consolidation against the Japanese Yen (JPY), maintaining support at the 20-day Simple Moving Average (SMA) after reaching its highest level since June 2007. Despite this, attempts to retest the key 97.00 resistance level are expected, but a break above this barrier seems unlikely. The daily chart indicators for the NZD/JPY pair are trending downwards, suggesting potential additional consolidation in the upcoming trading sessions.
Friday saw an extended consolidation phase for the NZD/JPY pair, maintaining its level after reaching multi-year highs earlier in the week. The technical landscape indicates a continuation of the consolidation phase, potentially constraining upside movements under the psychological resistance level of 97.00. The daily Relative Strength Index (RSI) stands at 57 and is retracing slightly downwards, hinting at a decrease in bullish momentum. The Moving Average Convergence Divergence (MACD) is printing flat red bars, reinforcing the idea of ongoing consolidation.
The consistent presence of buyers above the 20-day SMA signals a concerted effort to uphold the bullish trend. However, the exhaustion signal observed in the daily technical indicators suggests the market’s need for additional consolidation following a significant bounce to 96.00 since May. The upcoming trading sessions may see the NZD/JPY pair oscillate between the support level of 95.00 and the resistance level of 97.00, as it remains near its highest levels since June 2007. The 100-day and 200-day SMAs around 90.00 – 92.00 continue to support the overall bullish outlook of the pair, with the 95.30 level also providing substantial support against potential losses.
In conclusion, the NZD/JPY pair is currently experiencing a consolidation phase after reaching multi-year highs. The technical indicators suggest a potential decrease in bullish momentum, with the pair expected to oscillate between support at 95.00 and resistance at 97.00 in the near term. The longer-term SMAs continue to support the overall bullish outlook of the pair, maintaining its position among the highest levels since June 2007. Traders should monitor the key resistance level of 97.00 for potential breakout opportunities in the future.
