Bulls strengthen control, breaking resistance to the eye

• NZD/JPY is retreating from Monday’s high and consolidating around 90.00.
• RSI remains in positive territory, MACD’s rising green bars indicate bullish momentum.
• Bulls target resistance at 90.50, breakout could extend gains.

NZD/JPY, after posting a 0.30% gain on Monday, pulled back slightly and consolidated around the 90.00 level. Bulls remain in control in the short term, with technical indicators painting an optimistic picture. The Relative Strength Index (RSI) is currently at 56, indicating that buying pressure remains high and corresponds to an increasing slope of the RSI, suggesting that buying pressure is increasing. Moving Average Convergence Divergence (MACD) is also bullish with the histogram rising and green.

Over the past seven sessions, NZD/JPY has traded sideways, oscillating between the 89.40 and 90.40 levels. This consolidation period formed three clear round support levels at 87.50, 88.00 and 88.50. Notably, the pair also established resistance levels at 89.50, 90.00 and 90.50. Recent price action suggests that the bulls are in control and a break above the 90.50 resistance level could lead to further gains in the short term.

NZD/JPY Daily Chart