Nzdjpy Trades Beyond Support

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Nzdjpy Trades Beyond Support

NZD/JPY Trades Beyond 87.00, Bears Still In Control

On Monday, the NZD/JPY pair continued to trade beyond the 87.00 handle, which is a sign of NZD appreciation. However, the NZD/JPY D1 timeframe shows that bears are still in control. In simple words, we can view the recent upside of NZD/USD as a correction wave.

Against this backdrop, it seems that the sentiment surrounding NZD/JPY is natural at best, with a higher chance of a bearish trend. In fact, the bears have already established control after pushing the NZD/JPY lower by 2.75% this month.

NZD/JPY RSI Shows Little Movement

The NZD/JPY D1 timeframe also shows that the RSI indicator is pretty much flat, but it is still in the bearish zone. Similarly, the MACD shows red bars that are mostly flat, but the fact is that they are still red.

However, the one thing that goes in favor of the NZD/JPY bull is the 200 SMA. This long-term MA shows that the bullish trend is strong despite the long-term bearish sentiment. It also highlights that bears will need to step up their efforts if they want the bearish trend to continue once again.

Pretty much similar action can be seen on the NZD/JPY H4 timeframe as well. Most of the indicators are still in the bearish territory, while the long-term trend on the H4 is bearish as well.

Although the NZD/JPY is bullish for now, it is still important to note the support levels present at 87, 86.50, and 86.00.

On the upside, the 100 SMA is at 87.62, which will serve as dynamic support for the NZD/JPY. Once this hurdle is crossed, the NZD/JPY will then set its eyes on the 88.80, followed by the 88.11, where the 20 SMA is located.

On the NZD's side, there's not much to report, but the Japanese Yen is expected to receive more volatility as the BOJ decision is almost upon us! That's why it is safe to assume that anything can happen in the NZD/JPY after the BOJ's decision.

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