The bullish bias continues as the pair crosses the 98.00 level

• The NZD/JPY bullish trend continues with the pair rising above the 98.00 level, marking new highest levels since 2007.
• The 20-day simple moving average provides strong support at 96.90.
• Strong bullish outlook remains, but consolidation is on the horizon.

On Friday, the NZD/JPY made significant progress, gaining momentum and setting new session highs above 98.00. Notably, this represents the highest level for the pair since 2007, confirming the strong bullish bias. However, due to overbought conditions, a healthy correction will be necessary.

The Relative Strength Index (RSI) value on the daily chart is now 68, which means it has entered the overbought zone. This shows a continuation of the upward advance from earlier in the week, indicating that positive momentum is still driving the pair. Despite these strong bullish indicators, the Moving Average Convergence and Divergence (MACD) is not turning into green bars, indicating that buyers may be losing momentum.

NZD/JPY Daily Chart

Going forward, market participants are closely monitoring the immediate support level at 97.00, with additional support at 96.90, near the 20-day simple moving average and the previous low at 95.00. Moreover, they have set their sights on the 98.50 and 99.00 resistance targets. A decisive break above the continuation range will provide further confirmation of upside potential, while a slip below the 20-day SMA could indicate a deeper correction.