NZD/JPY Price Analysis: Momentum declined, bulls defend the 20-day SMA

• 
  NZD/JPY
  saw
  a
  moderate
  decline,
  but
  buyers
  successfully
  kept
  the
  20-day
  SMA
  of
  97.80.
• 
  Bears
  got
  momentum
  from
  RBNZ’s
  dovish
  decision.
• 
  Indicators
  are
  scaping
  overbought
  conditions
  so
  the
  pair
  might
  enter
  in
  a
  consolidation
  phase.

During
Wednesday’s
trading
session,
the
NZD/JPY
pair
experienced
a
0.40%
decline
to
land
at
98.30.
Although
it
grappled
with
sellers’
pressure,
the
bulls
managed
to
defend
the
key
20-day
Simple
Moving
Average
(SMA)
of
97.80.

On
the
daily
chart,
the
Relative
Strength
Index
(RSI)
value
now
stands
at
61.
Compared
with
Tuesday’s
overbought
reading
of
72,
the
RSI
is
noticeably
lower,
signaling
potential
relief
from
overbought
conditions.
This
drop
indicates
a
shift
from
the
previous
bullish
momentum
and
may
suggest
a
pullback.
The
Moving
Average
Convergence
Divergence
(MACD)
now
displays
a
fresh
red
bar,
indicating
lesser
buying
momentum,
which
aligns
with
the
possible
pullback
scenario.

NZD/JPY
daily
chart

Gearing
towards
a
possible
downward
correction,
immediate
support
is
seen
around
the
97.70
(20-day
SMA)
and
97.00
markers.