NZD/JPY Price Analysis: Hovers around 80.00 on a mixed market sentiment
- The NZD/JPY would remain subject to market sentiment until Friday when the Bank of Japan would unveil its monetary policy,
- The cross-currency would trade in a narrow range ahead of the US Federal Reserve.
- NZD/JPY Price Forecast: Still upward biased but facing solid resistance around the 80.00 mark.
On Tuesday, the NZD/JPY finished the day with gains of 0.46% but fell short of reaching a new YTD high, retreating from 80.21 to 80.07, on a sudden shift in market sentiment. At the time of writing, the NZD/JPY is trading at 80.04.
NZD/JPY Price Forecast: Technical outlook
The NZD/JPY entered a consolidation phase, around the 79.50-80.00 area, ahead of the US Federal Reserve monetary policy meeting, as market players get ready. Most G8 currencies would remain in tight ranges unless a geopolitical event ignites violent shifts ahead of one of the most critical events in the calendar.
Noteworthy, the slope of the daily moving averages (DMAs), almost horizontal but below the spot price, suggesting the cross-currency pair might print another leg-up. However, the 200-DMA at 77.88 is trapped between the 100-DMA at 78.12 and the 50-DMA at 77.51.
If the NZD/JPY aims to go higher, the first resistance would be March 14, 80.26 high. Breach of the latter would expose the 81.00 mark, followed by a challenge of November 1, 2021, daily high at 82.21.
On the flip side, the NZD/JPY first support would be 79.57, March 7 daily high previous resistance-turned-support. Once cleared, the next support would be the 79.00 mark, followed by 78.83, January 13 resistance/support.
