NZD/JPY falls for the third day in a row, clings to 76.00

• The NZD/JPY edges lower some 0.42% during the day.
• Market sentiment dynamics and commodity prices linked to the kiwi would be the drivers for the pair.
• NZD/JPY Technical Outlook: Bearish in the near term, as market sentiment has remained downbeat in the last three days.

The NZD/JPY continues its free-fall as the year’s end looms, trading at 76.31 as the Wall Street session ends at the time of writing. Wall Street closed in the red, with US equity indices posting losses between 1.10% and 1.55%. Asian equity futures point to a lower open, thus weighing on risk-sensitive currencies like the NZD, in benefit of the safe-haven status of the Japanese yen.

Monday's session gainers were the low yielders EUR, CHF, and JPY, while the NZD lost 0.22% during the day against its counterpart, the USD dollar.

On Monday, the New Zealand economic docket reported Exports, Imports, and the Trade Balance for November. Exports and Imports on a monthly basis were higher than the previous figure, came at $5.86 Billion and $6.73 Billion, respectively. Meanwhile, the Trade Balance on an annual basis came at $-6.04B, lower than the $-6.047B estimated.

That said, the NZD/JPY pair would lie in the dynamics of market sentiment. Any risk-aversion in the financial markets would witness Japanese yen strength, in turn, drops in the NZD/JPY pair. On the other hand, any rallies in stocks would favor risk-sensitive currencies like the NZD, the GBP, and the AUD.

NZD/JPY Price Forecast: Technical outlook

The NZD/JPY daily chart shows that the pair re-tested the December 3 daily low at 75.95, but the downward move stalled, bouncing back above the 76.00 figure.

The bias in the cross-currency pair is bearish, as shown by the daily moving averages (DMAs) residing well above the spot price, despite the fact of being almost horizontal and would be crucial resistance levels, in the event of the NZD/JPY breaking to the upside.

That said, the first support would be the December 3 swing low at 75.95. A decisive breach of the latter would open the door for further losses. The next line of defense downwards would be the July 20 swing low at 75.25, followed by the August 19 low at 74.55