NZD/JPY Price Analysis: Pokes key support line near 82.80 on dismal NZ employment data

• NZD/JPY dropped 45 pips on New Zealand’s downbeat employment numbers.
• NZ Q2 Unemployment Rate, Employment Change marked softer than expected and prior releases.
• Ascending support line from late January defends buyers, 81.25 is a tough nut to crack for bears.

NZD/JPY holds lower ground near a 10-week low as sellers attack 82.80 support during the initial Asian session on Wednesday. That said, the cross-currency pair’s latest weakness could be linked to the downbeat New Zealand (NZ) employment data. However, an upward sloping support line from January 28, 2022 seems to challenge the pair sellers of late.

New Zealand employment numbers for the second quarter (Q2) raised concerns over the Reserve Bank of New Zealand’s (RBNZ) hawkish mood and drowned the New Zealand Dollar (NZD) on release. That said, NZ Unemployment Rate surprisingly grew to 3.3% versus 3.1% expected and 3.2% prior while the Employment Change dropped to 0.0% versus 0.4% market forecasts and 0.1% previous readings.

It should be noted that the bearish MACD signals and the pair’s sustained downside break of the 50-DMA keep sellers hopeful of breaking the nearby support line, at 82.80 by the press time.

In a case where the NZD/JPY prices drop below 82.80, a convergence of the 200-DMA and 50% Fibonacci retracement of January-April upside, near 81.25 will be a crucial support to watch for forecasting the next moves of the pair.

Alternatively, recovery remains elusive until the quote stays below the 100-DMA level of 84.33.

Following that, a downward sloping resistance line from April 20, near 86.15, will be important for the NZD/JPY bulls to watch before dominating further.

NZD/JPY: Daily chart

Trend: Further weakness expected