On Tuesday, the NZD/JPY pair demonstrated resilience above the 20-day Simple Moving Average (SMA) at 95.90, with the pair inching closer to cycle highs near 97.00. The landscape indicates that the consolidation phase continues to hold sway, potentially limiting all upward movements of the cross past the mentioned cycle highs.
The Relative Strength Index (RSI) for NZD/JPY on the daily chart has escalated to 58 from 56.60, suggestive of an increase in buying momentum. Conversely, the Moving Average Convergence Divergence (MACD) continues to print red bars, insinuating a possible suppression of the bullish momentum and thereby corroborating the ongoing consolidation.
With buyers affirming presence above the 20-day SMA and indicators alluding to possible exhaustion, it elucidates the market's need to consolidate following the substantial surge observed in May. The ensuing trading sessions may continue to see the pair oscillate between the 95.00 level as a support and the 97.00 level as resistance, as the pair possibly stabilizes following recent gains.
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