• NZD/JPY continues consolidating at 97.70.
• The 20-day SMA will offer strong support at 96.30 where the sellers will face a strong fortification.
• Despite the consolidation, the bullish outlook remains afloat, with targets set on the key resistance of 98.00.

On Wednesday, the NZD/JPY cross was seen neutral at 97.70 while extending its phase of consolidation. Nevertheless, the pair upholds robust support at the 20-day Simple Moving Average (SMA) of 96.30, maintaining its position near levels not seen since 2007. In that sense, a healthy correction was increasingly necessary to alleviate the overbought conditions.

The daily Relative Strength Index (RSI) currently sits at 64, slightly lower than Tuesday'sreading, indicating a mild downward momentum. Despite this subtle decline, the indicator remains in positive territory, moving away from extreme conditions. Conversely, the Moving Average Convergence Divergence (MACD) prints a fresh red bar, signaling a reduced buying pressure. This hints at a possible continuation of the consolidation phase.