The NZD/JPY cross has been on an upward trend, reaching multi-year highs above 97.50. The daily chart shows strong bullish sentiment, with the Yen weakening against its peers. The 20-day Simple Moving Average (SMA) has been a strong support level, helping buyers defend against sellers’ attempts to breach it. The daily Relative Strength Index (RSI) is at 68, signifying upward momentum, while the Moving Average Convergence Divergence (MACD) shows decreasing selling pressure.
The bulls have been able to maintain their positions above the 20-day SMA, indicating the Kiwi’s technical strength against the Yen. However, with the RSI approaching the overbought threshold, investors should proceed with caution. The inability of sellers to break below the 96.30 support level has led to the surge in prices, with resistance now at 98.00. In the upcoming trading sessions, the cross may move between support at 97.00 and resistance at 98.00. A break above or below these levels could signal a further increase or decrease in prices.
Overall, the NZD/JPY cross has shown strong bullish momentum, with the Yen weakening against the Kiwi. Investors should monitor technical indicators such as the RSI and MACD for signs of potential reversals in the trend. The ongoing battle between buyers and sellers around key support and resistance levels will determine the next direction of the cross. With the 20-day SMA providing solid support, a break above the resistance level could pave the way for further gains, while a drop below the SMA could signal a deeper correction.
In conclusion, the NZD/JPY cross has reached multi-year highs, supported by strong technical indicators and bullish momentum. Investors should closely monitor key support and resistance levels, as well as technical indicators such as the RSI and MACD. The upcoming trading sessions will likely see continued volatility as buyers and sellers battle for control of the cross. A breakout above the resistance level could lead to further gains, while a drop below the 20-day SMA could indicate a potential reversal in the trend.
