Kiwi gains ground and tests the 97.00 level.

• The kiwi is showing an upward trend against the yen and is approaching the resistance point of 97.00.
• Daily chart indicators reflect strength and suggest a potential continuation of the uptrend.
• Resistance appears at 97.00-98.00. However, strong buying traction could recapture the uptrend.

During Tuesday’s session, the NZD/JPY pair showed gains as it moved closer to the resistance point of 97.00 after defending strongly against the 20-day simple moving average (SMA) at 96.30. SMAs have been shown to be resilient to sellers’ attempts.

The daily relative strength index (RSI) for NZD/JPY currently stands at 63, indicating positive changes and increasing buying momentum. On the other hand, Moving Average Convergence Divergence (MACD) continues to have a declining red bar, suggesting that the ongoing consolidation phase may ease and lead to an upward move.

NZD/JPY daily chart

Buyers continue to hold positions above the 20-day simple moving average (SMA) in a determined effort to ensure the continuation of the bullish trend. The recent upward trend seen in daily technical indicators highlights the intention of market participants to end the consolidation phase. In the last session, the pair traded sideways using the 20-day SMA as support, with buyers taking a brief breather before seemingly getting back on track.

The upcoming trading session will see the pair oscillating between support levels of 96.30 (20-day SMA) and 95.00 and resistance levels of 97.00, targeting the recent high of 97.30. In particular, the resilience of buyers defending the 20-day SMA at 96:30 is a promising sign for a potential continuation of the upside. Below this level, the longer-term 100-day and 200-day simple moving averages (SMAs) around 92.00 and 91.00 respectively continue to provide overall support for the bulls.