NZD/JPY Price Analysis: Bears continue pressuring the pair, eyeing 76.00

• The NZD/JPY begins the Asian session on the right foot, up 0.16%.
• The market sentiment is mixed, as Wall Street closed in the red, whereas Asian equity futures point upwards.
• NZD/JPY bears would need a daily close below 76.65 to secure the downward bias.

As the Asian Pacific session begins, the NZD/JPY moderately advances during the day, up some 0.16%, trading at 76.86 during the day at the time of writing. The market sentiment is a mixed bag. Major US stock indices finished the day with losses, while Asian equity futures point upwards as the Asian session kicks in. 

In the US, the CDC reported the first Omicron coronavirus case detected in California. That, coupled with South Africa registering double of Tuesday’s COVID-19 cases, increased investors’ worries as the New York session closed. Amid the abovementioned, the US central bank chief Jerome Powell appears at the US congress. He reinforced that the Federal Reserve will need to taper faster and will use the tools available to tackle inflation.

That said, in the overnight session, the NZD/JPY topped around 77.90, to then plummeting towards the December 1 low at 76.70, a 120-pip drop. The fall is attributed to weak market sentiment amid the Omicron coronavirus crisis unless more data could confirm that it would not cause several symptoms and if vaccines could help treat the newly discovered strain in South Africa.

NZD/JPY Price Forecast: Technical outlook

From a technical perspective, the NZD/JPY daily chart depicts a downward bias, confirmed by the daily moving averages (DMA’s) residing above the spot price with a flattish slope. Further, the cross-currency pair broke below the September 3 high at 78.64 previous resistance-turned-support, a crucial level, as the 100 and the 200-DMA were exposed and broken, once the former gave way to JPY bulls.

In the outcome of extending the downward move, the first support would be the November 30 low at 76.65. A breach of the latter would expose the September 22 low at 76.33, followed by the August 19 low at 74.55.

On the other hand, the first resistance would be the November 30 high at 77.76. A break of that level would exert upward pressure on the pair, exposing the December 1 high at 77.90. Once that level is broken, the 100 and the 200-DMA’s would be exposed around the 78.09-78.25 area.