The card reversal pattern as the indicators become optimal

• NZD/JPY’s latest price action shows a reversal of last week’s losses, with the pair extending gains from Tuesday’s session.
• The RSI is rising sharply, showing that buying pressure is recovering.
• Falling red bars in the MACD suggest that selling pressure is easing.

In Tuesday’s session, NZD/JPY rose 0.95% above 88.00. Given the fresh gains and the latest technical outlook, a reversal of last week’s losses is on the cards.

The Relative Strength Index (RSI) is currently at 45, 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. This mixed technical outlook suggests that the NZD/JPY pair may continue to strengthen in the short term after recent sharp losses.

NZD/JPY Daily Chart

Supports on the downside are located at 86.50, 86.30 and 86.00, while resistances are seen at 87.50, 87.70 and 88.00. Traders should look for a break above 88.50 or below 86.50 to confirm a break in either direction.