The NZD/JPY pair has been on a three-day winning streak, with Wednesday’s session seeing it rise to 88.25. Despite the negative RSI, the rising slope indicates recovering buying pressure, while decreasing red bars in the MACD suggest weakening selling pressure. This combination of technical factors is leading to the possibility of a reversal of last week’s losses.
The RSI is currently at 46, still in negative territory, but with a sharp rising slope indicating an increase in buying pressure. The MACD is also red, but with a decreasing histogram, suggesting a decline in selling pressure. With the NZD/JPY pair accumulating gains and a three-day winning streak, the bulls are presenting a strong case for a reversal.
Key support levels for the NZD/JPY pair are at 87.00, 86.50, and 86.00, while resistance points are at 88.00, 88.50, and 89.00 (20-day SMA). A break above the 89.00 resistance level would confirm a recovery, potentially leading to further upside movements if the bulls manage to sustain the momentum.
In summary, the NZD/JPY pair has shown positive price movements in recent sessions, with technical indicators suggesting a reversal of last week’s losses. The rising slope of the RSI and decreasing histogram in the MACD point towards recovering buying pressure and weakening selling pressure, supporting the bulls’ argument for further upside movements. Traders should pay close attention to key support and resistance levels to gauge potential entry and exit points for trading the NZD/JPY pair in the current market environment.
