NZD/JPY Price Analysis: Trapped in the 75.25-76.00 range
- Indecision in the NZD/JPY pair keeps the cross-currency range-bound.
- A risk-on market mood keeps the NZD in the bid, weighed on the safe-haven JPY.
- NZD/JPY is downward biased, but in the event of a daily close above 76.00 would open the door for further gains.
The NZD/JPY snaps two days of losses, steady around 75.70 at the time of writing. US equity indices print gains as the New York session finishes. Alongside that, commodity currencies like the NZD, the AUD, and the CAD, rose by 0.76%, 1.03%, and 0.45%, respectively. Contrarily, safe-haven peers led by the USD and the JPY
NZD/JPY Price Forecast: Technical outlook
On Monday, in the Asian session, the NZD/JPY rose higher up to 76.01, to then retreat some towards 75.71. Following the retracement, American traders got to their desks reached a daily high around 76.11, following the path of US equities, but failed to break above that resistance area, sending the pair tumbling towards the daily lows around 75.50s.
The NZD/JPY daily chart depicts a downward bias. The daily moving averages (DMAs) reside above the spot price, providing the direction of the trend. Furthermore, failure to break the resistance above 76.00 keeps the cross-currency pair trading near the tops of the 75.27-75.96 range.
If the NZD/JPY pair prints a daily close above 76.00, that would open the door for further gains. The next resistance would be the January 20 daily low, previous support-turned-resistance at 77.05, followed by the 50-DMA at 77.46.
On the flip side, the first support would be the July 2021 lows at 75.27, followed by 2021 yearly lows at 74.56.
