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.