NZD/JPY gained some momentum and closed above the 100-day SMA

• The NZD/JPY advanced above the 100-day SMA, closing at 87.60.
• The cross tallied its third consecutive day of gains.
• Indicators start to tilt in favour of the bulls as the cross may face a period of consolidation.

In Tuesday’s session, the NZD/JPY gained some reactions and closed just above the 100-day Simple Moving Average (SMA) at 87.60.

Observing the daily chart, the pair displays a bearish technical outlook for the short term as the bears gained significant momentum and asserted their presence in the latest session. However, the cross lost more than 1% last week, and the pair may consolidate those losses in the next sessions. In the meantime, the Relative Strength Index (RSI) shows a flat slope in the negative territory, while the Moving Average Convergence (MACD) histogram lays out lower red bars.

If the bears push the cross back below the 100-day Simple Moving Average (SMA), they may target multi-month lows around 85.80. On the other hand, the pair may trade sideways to consolidate the recent downward movements.

Support levels: 87.58 (100-day SMA), 87.13, 86.50.

Resistance levels: 87.80, 88.30, 88.50.

NZD/JPY Daily Chart