NZD/JPY advances modestly but closes a week with losses

• NZD/JPY rose almost 0.10% towards the 89.245 area
• The cross continues with lateral operations, slightly inclined downwards.
• The bulls appear to be taking a pause after last week’s 3% gains.

He NZD/JPY will close a week with losses of 0.30% around the 89.245 area, as investors are taking profits from the strong gains at the beginning of the month.

Looking at the daily chart, NZD/JPY is showing signs of bullish exhaustion after the cross gained over 3% in early November. The Relative Strength Index (RSI) has turned flat above its midline, while the Moving Average Convergence (MACD) prints neutral green bars. On the four-hour chart, the indicators have also flattened but are also tilting slightly higher, suggesting that buyers are consolidating gains.

Furthermore, the cross sits above the 20,100,200-day SMA, suggesting that the outlook also favors the bulls on longer timeframes. Furthermore, there could be bullish confirmation as the 100-day SMA is converging towards the 20-day moving average to make a bullish crossover, which could reignite short-term buyers’ momentum.

Support levels: 89,000, 88,700, 88,500.

Resistance levels: 89.5000, 89.850, 90,000.

NZD/JPY Daily Chart