Bulls regain control, bear squeeze eases

• NZD/JPY rose 0.15% in the session on Monday but remains below 88.00.
• The pair is currently trading in a range between 87.50 and 88.40.
• The bears have the 87,000 threshold in sight.

The NZD/JPY pair has recovered some of its recent losses, suggesting that the bears’ grip is weakening. Meanwhile, indicators remain in negative territory and the outlook suggests that sellers are taking a break.

The Relative Strength Index (RSI) has flattened below 50, indicating that bears are losing momentum. The Moving Average Convergence Divergence (MACD) has printed a red bar indicating steady selling pressure.

NZD/JPY Daily Chart

After falling below the 20-day simple moving average (SMA) of 89.60, the bulls intensified their actions to defend the 87.50 support, which could have parked the pair for further southerly moves. If buying continues, critical resistance levels appear at 89.00, 89.50 and 90.00.

Overall, the technical picture for the NZD/JPY pair is mixed. The pair is showing signs of a potential reversal but remains below its key moving averages. If the pair can break above the 20-day SMA, it could signal a further uptrend for the pair. Meanwhile, carry the order.