NZD/JPY Price Analysis: Struggles around 77.50, retreats toward 77.00 amid a risk-off market mood

• The NZD/JPY pares some of Wednesday’s gains, down some 0.01%.
• A seven-month-old downslope trendline around 77.30-50, reclaimed on Thursday.
• NZD/JPY Price Forecast: Failure to break resistance around 77.30-50, opened the door for further losses.

As the Asian Pacific session begins, the NZD/JPY starts on the wrong foot down some 0.01%, trading at 77.09 during the day at the time of writing. Factors like newly imposed COVID-19 restrictions across Europe, with the UK adding its name to the list, and Omicron variant’s spread, dented market sentiment, thus favoring safe-haven currencies like the JPY.

On Thursday, the NZD/JPY pair remained subdued within the 77.30-50 range, around the seven-month-old trendline. However, the pair dropped to the daily low at 76.88 amid a risk-off market mood as the European session began.

NZD/JPY Price Forecast: Technical outlook

The NZD/JPY failure to break the seven-month-old downslope resistance trendline could open the way for further downside. As mentioned yesterday, the daily moving averages (DMA’s) remain well above the spot price, supporting the bearish bias.

That said, the first support on the way down would be the December 9 swing low at 76.88. A breach of the latter would expose the December 8 cycle low at 76.69, followed by the December 3 low at 75.95.

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.