NZD/JPY Price Analysis: Buyers pull back to consolidate, sellers gain ground

• The daily RSI for NZD/JPY is showing a decreasing trend, hinting at a growing bearish bias.
• On the hourly chart, both the RSI and MACD reflect a growing bearish trend, supporting the sentiment on the daily chart.
• Any move that leaves the pair above its 20-day SMA will not challenge the bullish outlook.

The NZD/JPY pair fell 0.45% on Tuesday and is trading at 92.99. Despite some bearish overtones, NZD/JPY maintains a long-term bullish trend above its main SMAs. There is potential for short-term momentum swings as investors are pulling back to take profits after driving the pair to highs since 2015 on Monday.

On the daily chart, the RSI for NZD/JPY has decreased over the previous sessions. The index moved from overbought territory to below 70, indicating a possible reversal or slowdown in buying traction.

NZD/JPY daily chart

Moving to an intraday basis, the hourly chart presents a similar scenario. The RSI fell into negative territory. Simultaneously, the Moving Average Convergence Divergence (MACD) printed a red bar indicating bullish negative momentum. This indicates that investors continued to take profits on Tuesday and that sellers dominated trading during the session.

NZD/JPY hourly chart

From a broader perspective, NZD/JPY remains bullish despite the declines as it remains above its 20,100 and 200-day simple moving averages (SMA). However, if the bears manage to gain additional momentum they could reclaim the 20-day SMA, which could worsen the pair's prospects if lost.