Subtle cues in momentum shifts emerge, bulls still in charge

• The NZD/JPY is trading at 92.87, which represents a slight decline of 0.10% during Tuesday’s session.
• Indicators continue consolidating overbought conditions while the overall trend is still positive.

In Tuesday’s session, the NZD/JPY pair is seen at 92.87, trading with a slight loss of 0.10%. Even with this minor retreat, the overall technical sentiment continues to remain bullish. However, there’s a hint of weakening buying momentum in the short term as buyers seem to be taking a breather to correct overbought conditions.

On the daily chart, the Relative Strength Index (RSI) for the NZD/JPY pair is indicating a positive yet slightly weakened momentum, marking a slight decline. The Moving Average Convergence Divergence (MACD) on the other hand, has been showing decreasing green bars, signaling a declining positive momentum. This indicates that the buying pressure is showing signs of slowing down, a typical situation after an asset hits overbought conditions.

NZD/JPY daily chart

On the hourly chart, the RSI trend portrays a weaker picture, leaning more towards the negative territory, attesting to a short-term slowdown in buying pressure. Concurrently, the hourly MACD records flat green bars, reinforcing this short-term dip in positive momentum.

NZD/JPY hourly chart

However, the overall analysis suggests a predominance of bullish pressure in the broader outlook. The NZD/JPY pair maintains a position above the 20, 100, and 200-day Simple Moving Averages (SMAs) underpinning the control of the bulls. A balance between the daily and hourly perspective from the RSI and MACD could, therefore, suggest potential investment opportunities on moderate retracements as buyers may continue taking profits in the next sessions.