The NZD/JPY pair experienced a slight retreat during Monday’s session, with sellers attempting to push past a strong resistance at the 96.30 area. Despite this, buyers were able to prevent a significant decline, resulting in the pair entering a consolidation phase. The Relative Strength Index (RSI) dropped to 67 from 71, suggesting a decrease in momentum, while the Moving Average Convergence Divergence (MACD) indicated a decline in buying momentum. These factors point towards a continued period of consolidation rather than a reversal of the recent uptrend.
However, this retreat does not necessarily signal a reversal of the positive outlook for the NZD/JPY pair. It remains above a key support level at 95.50, with the 20-day Simple Moving Average (SMA) at 95.20 acting as a crucial level for sellers to breach in order to shift the balance in their favor. As long as the pair remains above these levels, the current pattern is likely to be viewed as corrective within the ongoing consolidation phase.
Despite facing resistance at the 96.30 area, the NZD/JPY pair is still within positive territory. The RSI hovering near the 70 threshold suggests room for correction, while the MACD showing decreasing green bars indicates a potential decline in buying momentum. This combination of technical indicators suggests that the pair is likely to continue in its consolidation phase for the time being, rather than experiencing a significant reversal in trend.
Looking at the daily chart for NZD/JPY, it is evident that the pair is still holding above its support level at 95.50. Breaking below this level and the 20-day SMA at 95.20 would be a significant development for sellers, potentially leading to a more bearish outlook for the pair. Until that happens, the current consolidation phase is expected to persist, with buyers finding support at key levels to maintain the overall positive trend.
In conclusion, the NZD/JPY pair experienced a slight retreat during Monday’s session, with sellers attempting to break past a strong resistance level. Despite this, buyers were able to prevent a significant decline, leading to a consolidation phase. The technical indicators suggest a decrease in momentum but do not point towards a reversal of the positive outlook for the pair. As long as key support levels hold, the NZD/JPY pair is likely to continue in its current pattern, with buyers maintaining control of the trend.
