The NZD/JPY currency pair is currently trading around 85.70, showing slight gains. However, it has a bearish outlook, with support below 85.60 and resistance at about 86.00. From a technical standpoint, the pair is having difficulty building momentum, as traders feel cautious. Short-term indicators, like the 20-day Simple Moving Average, hint at possible gains, but longer-term signals from the 100-day and 200-day SMAs suggest a downward trend.

Momentum Indicators

The momentum indicators show mixed results. The Relative Strength Index is in the 50s, indicating neutral momentum. The MACD shows a bit of bullish potential, but the Stochastic %K and the Commodity Channel Index advise caution. The Average Directional Index is around 15, showing that the market lacks strong trend conviction. Immediate support levels are at 85.64, 85.51, and 85.50. Resistance is at 85.70, 85.77, and 86.03, which could hinder any significant recovery. For those monitoring this pair, it’s hovering close to the 85.70 mark, trying for mild gains but without a solid foundation. Short buying bursts have pushed prices up briefly, but the overall trend leans downward. Support levels below 85.60 have held firm so far, though there’s little encouragement for follow-through. On the upside, resistance at 86.00 could block further advances unless a new catalyst appears. Technically, the situation looks mixed, balancing short-term optimism against a longer-term bearish trend. The 20-day Simple Moving Average hints at potential relief buying but is overshadowed by the downward slopes of the 100-day and 200-day SMAs. The longer these averages stay lower without reversing, the greater the chance that any rallies will quickly fade.

Lack of Clear Trend

Momentum indicators are also unclear. The Relative Strength Index in the 50s suggests there’s no strong buying or selling pressure—markets seem undecided and may be waiting for direction. The MACD attempts to rise, hinting at some strength, but this is offset by weaker oscillator readings. The Stochastic %K presents mixed signals, and the Commodity Channel Index appears flat, indicating limited conviction. The Average Directional Index around 15 indicates a lack of a clear trend. This situation doesn’t reveal sharp reversals or breakouts, but rather highlights indecision, meaning moves in either direction lack follow-through. In these conditions, maintaining a tight position is vital. The fluctuating behavior around the support levels of 85.64 and 85.50 suggests uncertainty. Resistance around 85.77 and stretching to 86.03 is more significant than usual and likely to impede any advances. Overall, we should be cautious about expecting any sharp upside until longer-term moving averages start to level off or curve upward. Current upward movements face immediate counteraction, and genuine momentum will need more than just brief intraday spikes. Create your live VT Markets account and start trading now.

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