NZD/JPY Price Analysis: Slides under 77.00 on risk-off market mood

• The first Omicron-linked death in the UK dented the market sentiment.
• NZD/JPY Technical outlook: The pair has a downward bias as long as it remains under the 200-DMA.

As  Wall Street closes, the NZD/JPY pair is trading at 76.65 during the day at the time of writing. As the trading session in the day ends, the market sentiment is downbeat. Omicron variant woes, and central bank monetary policy meetings, keep investors at bay.

In the European session in the UK, the first Omicron-linked death was reported amid raising the COVID-19 alert from three to four. Also, according to a University of Oxford study, two shots of vaccines showed a “substantial drop in neutralizing antibodies” when in contact with the new variant. 

In the overnight session, the NZD/JPY pair seesawed around the Monday central daily pivot at 77.05, coinciding with the 50 and the 100-hour simple moving average (SMA). However, as the market sentiment worsened, market participants flew towards safe-haven assets, leaving adrift risk-sensitive currencies.

NZD/JPY Price Forecast: Technical outlook

The NZD/JPY pair failed to break a seven-month-old downslope trendline, opening the door for further downside. Additionally, the daily moving averages (DMAs) reside well above the spot price, supporting the bearish bias.

That said, the first support on the way down would be the December 8 cycle low at 76.69, followed by the December 3 low at 75.95. A breach of the latter would expose the August 19 cycle low at 74.57.

On the other hand, the NZD/JPY first resistance would be the 77.30-60 area, respected on Thursday, followed by the 200-day SMA, at 78.07, immediately followed by the 100-day SMA at 78.26.