NZD/JPY bulls gain momentum as bears continue to consolidate

• NZD/JPY shows gains of 0.25%, signaling a strong start to the week.
• The bulls are in charge on a broader time frame, with the pair above the 20-day, 100-day, and 200-day SMAs.
• In the shorter time frames, the bulls are gaining traction.

In Tuesday’s session, the pair NZD/JPY it stood around 89.70, showing a modest 0.25% rebound. Additionally, bouncing off a 1.70% drop since Thursday, the bears are momentarily pulling back, allowing the bulls to gain ground.

The indicators on the daily chart reflect a stage of bullish dominance. The upward trajectory of the Relative Strength Index (RSI) underlines the prevailing strength of the buyers, which is corroborated by the pair’s positioning above its 20-day, 100-day, and 200-day simple moving averages (SMA). However, the moving average convergence divergence (MACD) shows a series of decreasing green bars, a possible warning of waning momentum on the part of buyers. However, while the bears appear to be catching their breath after pushing the pair down by over 1.70% since Thursday, dominant buying pressure persists in the broader context.

As for shorter-term momentum, the indicators on the 4-hour chart add consistency to buyers’ intervention. The four-hour Relative Strength Index (RSI) maintains a positive slope, while the Moving Average Divergence (MACD) exhibits decreasing red bars, reflecting a slight bullish bias, and the overall momentum appears more tilted in favor of the buyers.

Support Levels: 89.37, 89.00,88.70.
Resistance Levels: 90.00, 90.35, 91.00.

NZD/JPY daily chart