Bulls are regaining ground, need to conquer 20-day SMA

• NZD/JPY rose slightly to 89.30, testing the 20-day SMA.
• The RSI is near 50, while the MACD is showing flat green bars, signaling that momentum is sideways.
• A break above the 20-day SMA would confirm a bullish outlook.

NZD/JPY gained ground in the Friday session, climbing to 89.30. The upside follows the sideways moves during the week, but the pair could be poised for a trend change.

The Relative Strength Index (RSI) is approaching 50, indicating that the pair is close to neutral territory. If the RSI can move above 50, it could signal a potential shift in market sentiment. Moving Average Convergence Divergence (MACD) shows flat green bars, indicating that momentum is sideways. The positive divergence between the RSI and the MACD shows that the selling pressure is being pushed by the buying force and it is possible that if this holds, the pair will see upward movements in the coming sessions.

NZD/JPY has bounced back from the 88.50 support level and is currently challenging the 20-day SMA. If the pair continues to rise, it could find resistance at 0.8970 and 0.9000. On the downside, support can be found at 0.8900, 0.8880 and 0.8840. A sustained break above 0.8970 could signal a continuation of the uptrend, while a break below 0.8840 could signal a continuation of the downtrend. Volume has decreased in recent sessions, which is a sign of neutrality.

NZD/JPY Daily Chart