NZD/JPY Price Analysis: Bearish momentum prevails, buyers fight to retake the 20-day SMA

• On the daily chart, the RSI and MACD are showing bearish signals.
• The negative trend is stronger on the hourly chart.
• Despite the short-term bearish tilt, the crossover position above the major SMAs signifies a long-term bullish sentiment.

The NZD/JPY pair is trading in the 91.14 area, securing some daily gains after reaching a daily high of 91.60. Despite a short-term bearish trend, the pair maintains a long-term bullish position, positioning above the key simple moving averages (SMA). In the short term, it seems that the bears are preparing and the bulls are starting to weaken.

On the daily chart, the Relative Strength Index (RSI) is currently showing a negative trend, with a latest reading of 49 points. This, along with the declining green bars on the Moving Average Convergence (MACD) histogram, indicates a slowdown in positive momentum, suggesting that sellers are currently dominating the market.

NZD/JPY daily chart

On the hourly chart, the RSI shows lower readings, with the last value at 43, indicating a stronger negative trend in this time frame. Furthermore, the MACD histogram shows rising red bars, reinforcing the negative momentum. This change could indicate an increase in selling pressure during the last few sessions and that the cross could continue lower before the Asian session.

NZD/JPY hourly chart

Broader inspection of the NZD/JPY illustrates a mixed technical scenario based on its position relative to its simple moving averages (SMA). In the short term, bearish trends are evident as NZD/JPY fell below the 20-day SMA last week and failed to recapture it. This move could trigger selling pressure from a short-term perspective. However, NZD/JPY's position above the 100- and 200-day SMAs shows a more bullish underlying structure on longer-term horizons.

In case the bulls fail to reclaim the 20-day SMA, the cross could expose itself to further declines in the coming sessions.