- NZD/JPY edges lower under the 91.000 mark as selling pressure mounts.
- RSI declining, suggesting falling buying momentum.
- The 20-day SMA continues to be a strong barrier.
In Friday’s session, the NZD/JPY pair declined by 0.20% to 90.80, encountering increased resistance and losing ground still holding the key 20-day Simple Moving Average (SMA).
NZD/JPY daily chart
The daily Relative Strength Index (RSI) for NZD/JPY has dropped to 52, indicating a decline in buying pressure. The decreasing RSI values suggest that momentum is shifting in favor of the sellers but while it remains close to the middle point it suggests a neutral momentum. Moreover, the Moving Average Convergence Divergence (MACD) histogram has flattened and moved into negative territory. This technical indicator suggests that selling pressure is increasing and that the downward trend could continue.
The 100, and 200-day SMAs are close to perform a bearish crossover around the 92.00 mark which could be the catalyst the sellers need to enter the next bearish leg.
On the buyer’s side, the 20-day SMA, serves as a critical support level, continues to attract buyers and the sellers are being unable to breach it. However, if the pair breaks below this level, it could signal a further decline in prices. Critical support levels for the NZD/JPY pair are located at 91.00, 90.30 and 90.00, while resistance levels lie at 92.00, 92.15 ,and 92.50.
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