Consolidation remains, slight upward trend

• NZD/JPY is trading in a range bounded by 90.10 and 91.60.
• RSI is slightly up in positive territory, MACD down but still positive.
• A clear direction is lacking, but a potential reverse breakout could occur.

The NZD/JPY pair continues to move sideways on Wednesday, extending last week’s consolidation. The pair is currently trading at 91.00 with gains of 0.30% and a slight uptrend. The pair remains trapped in the range defined by the 90.00 support and 91.00 resistance, with indicators pointing to a lack of clear direction.

Technical indicators provide a mixed picture. The Relative Strength Index (RSI) is at 55, in positive territory, and has a slightly upward slope, indicating that buying pressure is ongoing. However, the Moving Average Convergence Divergence (MACD) is green and down, suggesting that buying pressure is weak.

The overall outlook is slightly bullish due to the pair’s position above the 20-day simple moving averages (SMA). However, caution is advised as the MACD is showing signs of weakness that could lead to a bearish leg. The main support level is the 90.00 area (20-day SMA) which in case of loss could ignite a decline in the 88.00-87.00 range. On the other hand, the main resistance to conquer is the 91.00 area which could fuel a rise towards 91.60.

NZD/JPY Daily Chart