The NZD/JPY currency pair experienced a decline to 91.00, marking a 0.27% decrease on Friday. Bears have been quietly asserting their dominance, successfully breaching the 20-day Simple Moving Average (SMA) as selling pressure continues to intensify. Despite this recent downturn, the broader outlook for the pair remains bullish.
Analyzing the daily chart, the Relative Strength Index (RSI) for the pair has dipped into negative territory, registering at 47, indicating a weakening momentum. Similarly, the Moving Average Convergence Divergence (MACD) illustrates a growing bearish momentum with the emergence of a fresh red bar. Collectively, these indicators suggest a prevailing dominance of sellers in the current market environment.
Turning attention to the hourly chart, the RSI resides below its midpoint, providing further support for a negative short-term outlook. Furthermore, the MACD histogram displays diminishing bullish momentum through decreasing green bars.
Despite these short-term fluctuations, NZD/JPY experienced significant developments on Friday, notably slipping below the 20-day SMA, a crucial short-term technical indicator. This development potentially signals a bearish trend in the near future. However, it’s worth noting that the pair remains above the 100-day and 200-day SMAs, indicating sustained bullish momentum over a more extended period.
As bears continue to strengthen their position, they may target the 100-day SMA around 90.60. Should they succeed in breaching this level, it could exacerbate the pair’s outlook, potentially leading to further downside movements.
