NZD/JPY Technical Outlook : Neutral-upward bias, confirmed by a bullish RSI.
After a busy week in the financial markets, NZD/JPY ended the week up 1.25%. Breaking News Russia is open to talking with the Ukrainian Government. Increased appetite for riskier assets in the FX space has meant that risk-sensitive currencies such as the NZD, AUD, and the AUD have risen to the disadvantage of safer-haven peers like the low-yielding Japanese yen. The NZD/JPY trades at 77.95 as of the writing.
Friday’s overnight session of North American traders showed a positive market sentiment despite Russia’s continued invasion of Ukraine. This was despite Russian President Vladimir Putin’s announcement. The NZD/JPY pair was in the 77.20-50 region during the Asian session. The NZD/JPY pair rose in the middle of European session, just before New York’s open. It rallied 44-pips and reached 78.01 on Friday.
NZD/JPY price forecast: Technical outlook
The NZD/JPY opened the North American session at 77.26 and DMA (50-day moving) respectively. However, the pair rallied to 78.00 late in New York and returned to their current levels. The pair is neutrally biased. However, the Relative Strength Index, (RSI), at 58.50 above 50-midline and aiming higher, indicates that the NZD/JPY are bullish biased with enough space before reaching overbought level. The NZD/JPY has a neutral-upward bias.
The NZDY/JPY initial resistance would rise to 78.00. Brute of this would open the door to the 100-DMA at 78.54, followed by the January 13 daily high at 78.13.
The NZD/JPY’s first support would be at 77.89 the 200-DMA. The 50-DMA at 77.26, followed by the 77.00 support, would be the next support.
