NZD/JPY Price Analysis: Seesaws around 76.28 post-Fed monetary policy meeting
- On Wednesday, the NZD/JPY clings to its gains, up some 0.10%, amid a risk-off environment.
- A risk-off market mood triggered an equities sell-off in the US stock market, influencing risk-sensitive FX currencies, like the NZD.
- The NZD/JPY is downward biased though a break above 77.00 would expose crucial DMAs.
The NZD/JPY edges up in the session, after Wall Street closed, gains some 0.22% after the Federal Reserve unveiled its monetary policy statement. At the time of writing, the NZD/JPY is trading at 76.20.
In the meantime, the risk sentiment got a toll after Fed’s Chairman Jerome Powell press conference, as shown by the NZD/JPY hourly chart, which depicts the pair slumped 60-pips.
However, in the aftermath of the press conference, the cross-currency pair trimmed some of its losses, trading at 76.20
NZD/JPY Price Forecast: Technical outlook
The NZD/JPY is downward biased per the daily chart. Nevertheless, JPY bulls have been unable to print a daily close below December 3, 2021, daily low at 75.96. The 50-day moving average (DMA) resides at 77.64, some 40-pips below the 200-DMA at 78.09, which is trapped between the former and the 100-DMA at 78.48.
That said, the NZD/JPY first support would be 76.00. A breach of the latter would expose the January 24 swing low at 75,74. If that level is broken, the next stop for the cross-currency would be July 20, 2021, pivot low at 75.27, and then August 19, 2021, low at 74.56.
Contrarily, the NZD/JPY first resistance would be January 26 daily high at 76.66. A daily close above that level would send the pair rallying towards January 21 daily high at 77.05, and then the 50-DMA at 77.64.
