Bear bias prevails as technical indicators remain unchanged

• NZD/JPY was slightly lower in the session on Tuesday, reaching 89.40.
• The RSI has flattened around 40, indicating a potential bearish trend, while the MACD remains neutral with green bars, suggesting a lack of clear momentum.
• The pair continues to trade in a range of 87.50 and 90.50.

The NZD/JPY currency pair continued to trade sideways despite Tuesday’s modest 0.15% drop to 89.40. Technical indicators paint a mixed picture, with the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicating a mild bearish trend.

The RSI remains neutral around 42, suggesting bears are present. If the RSI continues to move below, it would indicate a potential strong bearish reversal. The MACD shows flat green bars, suggesting that there is no clear momentum in either direction. For MACD, if the flat green bars progress to the red bars, it will suggest increasing bearish momentum and a potential strong reversal.

Volume has been consistently low, indicating a lack of conviction in recent price movements. The pair is currently trading in a range between 87.50 and 90.50. A break below 87.50 could lead to further declines towards 86.00, while a break above 90.50 could push the pair to 92.00.

NZD/JPY Daily Chart