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- The NZD/JPY pair is moving sideways after a three-day winning streak, showing mixed technical signals.
- The RSI remains near the oversold zone despite rising, and the MCI is recording decreasing red bars.
- A shrinking volume indicates that selling pressure is waning, signaling a potential reversal.
The NZD/JPY pair remained in a consolidation pattern on Friday, hovering around the 88.000 level. While the pair has seen a three-day winning streak, technical analysis suggests that the pair could be heading for a recovery. Indicators Contradictory signals appear, and the pair is set to trade sideways.
Technically, the Relative Strength Index (RSI) is currently at 30, indicating that the pair is still in the oversold zone. This suggests that there may be more room for recovery. On the other hand, the Moving Average Convergence Divergence (MACD) indicator is showing decreasing red bars, which may indicate that selling pressure is stagnating. Volume has been declining in recent sessions, which may indicate that selling pressure is easing. This is a positive sign for bulls, as it suggests that they may be gaining some momentum.
The bulls are trying to push the pair higher towards the 88.50 resistance level and if they succeed in breaking this level, it could open the door for more gains towards the 89.00 area. However, if the bears regain control and push the pair below the 88.00 level, it could lead to a deeper correction towards the 87.50-87.00 support area.
