The pair continues with slight upward movements, with reversal signs gaining relevance

• NZD/JPY is on a three-day winning streak, with Wednesday’s session adding to those gains, rising to 88.25.
• The RSI is still negative, but shows an upward slope, indicating a recovery in buying pressure.
• The decline of the red bars in the MACD confirms that selling pressure is easing.

In Wednesday’s session, the NZD/JPY pair rose by 88.25. Given the fresh gains and the latest technical insights, the possibility of a reversal of last week’s losses is growing.

The Relative Strength Index (RSI) is currently at 46, which is still in negative territory. However, the RSI slope is rising sharply, indicating that buying pressure is recovering. The Moving Average Convergence Divergence (MACD) is also red, but the histogram is falling, suggesting that selling pressure is diminishing. With the cross piling up gains and going on a three-day winning streak, the bulls are making a case for a reversal.

NZD/JPY Daily Chart

Key support levels 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 latter would confirm a recovery and further upward moves could be expected if the bulls complete it.