NZD/JPY Price Analysis: Bearish reversal signs emerge, buyers give up gains

• The daily chart indicates a bullish market; However, the hourly chart shows signs of a short-term bearish reversal.
• The NZD weakened significantly during the American session and erased daily gains.
• The hourly RSI fell from the overbought zone to the oversold zone.

The NZD/JPY pair shed all of its daily gains and fell almost 0.75% during the American session. Bearish signals are seen on the hourly chart, but the daily technical outlook remains somewhat bullish.

On the daily chart, the NZD/JPY Relative Strength Index (RSI) reveals its latest reading, shifting slightly towards a positive trend. The stock is surpassing the 50 mark after a period of dominance in negative territory. However, with the latest RSI reading just above 50, the momentum still cannot be seen as strongly favorable to buyers.

NZD/JPY daily chart

On the hourly chart, the RSI reading fell into negative territory after settling near 70. The MACD histogram has started printing ascending red bars, which also suggests growing negative momentum.

NZD/JPY hourly chart

As for the overall trend, the NZD/JPY pair jumped above the 20-day SMA today, often serving as a short-term bullish signal. Furthermore, the pair is above its 100- and 200-day SMA, also showing a positive long-term outlook.

In conclusion, based on both the daily and hourly trend, as well as taking into account the position relative to the SMA, the NZD/JPY is showing signs of a possible change from a bearish to a bullish stance in the short term. However, if the bulls hold the main SMAs, the outlook will remain positive.