NZD/JPY Price Analysis: Hovers around 76.50s amid a risk-off market mood

• The New Zealand dollar, as well as risk-sensitive currencies, keeps accumulating losses against safe-haven peers.
• On Tuesday, the trading range was between 76.43-88.
• NZD/JPY Technical Outlook: It has a downward bias, but upside risks remain.

On Tuesday, the NZD/JPY pair remained subdued, trading at 76.56 during the day at press time. The market mood stills dampened, attributed to central banks hosting monetary policy meetings, though investors mainly focus on the Federal’s Reserve decision.

The cross-currency fluctuated around the 76.43-88 range during the overnight session, between the S1 and the R1 Tuesday’s daily pivot points, with no clear bias. Nevertheless, the hourly-simple moving averages (SMAs) reside above the spot price, confirming the short-term bearish bias.

NZD/JPY Price Forecast: Technical outlook

The NZD/JPY has a neutral-bearish bias. The daily moving averages (DMAs) are located above the spot price with a flattish slope and would be challenging resistance levels to overcome once the price hovers around that area. Additionally, as mentioned in Monday’s piece, the NZD/JPY failed to break above a seven-month-old downslope trendline, which opened the door for further losses.

On the downside, the first support would be the December 3 swing low at 75.95. A breach of the latter would add downward pressure on the NZD/JPY, pushing the price towards July 20 low at 75.25, followed by the August 19 low at 74.55

On the flip side, the first resistance would be the December 9 low previous support-turned-resistance at 76.88, followed by the figure at 77.00. A clear break of the latter would expose 77.30-60 area.