NZD/JPY remains stable at 97.60, as the pair starts consolidating.
The 20-day SMA at 96.30 offers considerable support against a potential correction.
Despite the consolidation phase, the bullish outlook persists, eyeing the next key resistance at 98.00.
On Tuesday, the NZD/JPY cross appeared to have entered a consolidation phase, retaining its footing at the fresh high of 97.80. Flaunting its resilience, the pair maintained its strong support at the 20-day Simple Moving Average (SMA) of 96.30, while hovering at high levels not witnessed since July 2007. The bullish outlook remains undisputed, despite the necessity for a healthy correction to address the overbought conditions.
The daily Relative Strength Index (RSI) currently stands at 66, a decline from Monday's 68, hinting at an impending downtrend. However, it remains within a positive territory devoid of extreme conditions. Meanwhile, the Moving Average Convergence Divergence (MACD) prints flat red bars which implies diminishing buying pressure as a shift towards a potential consolidation or correction phase.
