NZD/JPY Price Analysis: Steady around 76.00 courtesy of positive market sentiment
- The NZD/JPY advances 0.49% as the North American session ends.
- Mixed NZ macroeconomic data kept the exchange rates unchanged.
- The NZD/JPY path of least resistance is downwards, though the daily close above 76.00 opened the door for a leg-up towards 77.00.
The NZD/JPY climbs as the Asian Pacific session begins, though it faces strong resistance around the 76.00-20 area. At the time of writing, the NZD/JPY is trading at 76.13. Tuesday’s market sentiment was upbeat, as portrayed by US equities finishing in the green. In the Asian Pacific region, equity futures point to a higher open.
NZD/JPY Price Forecast: Technical outlook
On Tuesday, in the Asian session, the NZD/JPY seesawed around the 75.50-75 range. However, in the North American session, a positive market mood spurred a rally towards 76.20. However, positive New Zealand macroeconomic data crossing the wires caused a dip to 76.08 on the pair.
The NZD/JPY remains downward biased. The daily moving averages (DMAs) stay above the spot price, with a downslope, in the case of the 50-DMA. That said, the first support level would be 76.00. A breach of the latter would expose July 20, 2021, daily low at 75.27, followed by August 19, 2021 daily low at 74.56.
Contrarily, in the event of the cross-currency pair holding its ground against JPY bulls, the first resistance would be 76.24. A break above that level could pave the way for further gains. The next resistance would be January 26 daily high at 76.67, followed by January 21 cycle high at 77.05.
