NZD/JPY Price Analysis: Pair moves lower amid fading bullish momentum

• NZD/JPY falls to 88.45 on Thursday, marking a continuation of its recent decline.
• Momentum weakens as the pair fails to extend gains from earlier in the week.
• Market sentiment remains cautious, with the pair trading near short-term support levels.

The NZD/JPY pair retreated on Thursday, closing at 88.45, as the recent decline extended into another session. The pair’s inability to maintain its previous bullish trajectory suggests a weakening of bullish momentum, keeping traders cautious about the potential for further upside. Although the overall trend remains slightly positive, the latest movements point to a more balanced market dynamic.

Technical indicators offer a mixed picture. The Relative Strength Index (RSI) stands at 53, remaining in positive territory but showing a slight decline, indicating reduced buying interest. Meanwhile, the MACD histogram remains flat with green bars, signaling a lack of strong directional momentum. Together, these readings suggest that the pair could struggle to regain its position without a significant catalyst.

For now, support is seen around the 88.20 level near the 20-day SMA, with a break below this level potentially opening the door to 88.00 or lower. To the upside, resistance at 88.75 will be key, and a sustained push above this level could signal renewed bullish interest, pointing to the psychological level of 89.00 as the next hurdle.

NZD/JPY daily chart