NZD/JPY extends losses as bulls struggle to gain momentum

• NZD/JPY at 89.50, posting minor losses as market sentiment tilts somewhat bearish
• The RSI shows a negative slope and the MACD histogram shows decreasing green bars.
• In a broader context, the pair’s rise above the 20-, 100-, and 200-day SMAs suggests bullish control.

In Monday’s session, the pair NZD/JPY It traded around 89.50, suffering slight losses. Indicators reflect that buying momentum is waning after the pair hit a multi-year high around 2015 last week, as investors continue to take profits.

On the daily chart, the negative slope of the Relative Strength Index (RSI), although within the positive territory, along with the declining green bars of the Moving Average Divergence (MACD), hint at a slowdown in the buying momentum. However, the pair’s position above its 20-day, 100-day, and 200-day SMA suggests that the bulls have a firm grip on the broader outlook, indicating potential resistance in the buying pressure.

If we take a look at the four-hour chart, we will see a different perspective. The flat slope of the Relative Strength Index (RSI) below its midpoint along with the decreasing greenish-red of the four-hour Moving Average Convergence Divergence (MACD) curbs the selling momentum, indicating that in the short term buyers could intervene.

Support levels: 89.10, 88.84 (20-day SMA), 88.50.
Resistance Levels: 89.70, 90.00, 90.30.

NZD/JPY daily chart