• NZD/JPY is moving sideways after a three-day winning streak and mixed technical signals are emerging.
• Despite the increase, the RSI remains near the oversold zone and the MACD is printing decreasing red bars.
• The falling volume suggests that selling pressure is easing, indicating a possible trend reversal.

The NZD/JPY currency pair remained in a consolidation pattern on Friday, fluctuating around the 88,000 level. Although the pair has a three-day winning streak, technical indicators are giving contrary signals and the pair will trade sideways.

From a technical perspective, the Relative Strength Index (RSI) indicator is currently at 30, indicating that the pair is still in the oversold zone. This suggests that there could be further room for a recovery. The Moving Average Convergence Divergence (MACD) indicator, on the other hand, is showing decreasing red bars, which could indicate stagnation in selling pressure. Trading volume has been declining over the past few sessions, which could indicate that selling pressure is easing. This is a positive sign for the bulls as it suggests that they may be gaining some momentum.

The bulls are attempting to push the pair higher towards the 88.50 resistance level and if they manage to break this level, it could open the doors for further gains towards the 89.00 area. However, if the bears regain control and push the pair below the 88.00 level, it could start a stronger correction towards the 87.50-87.00 support zone.

NZD/JPY daily chart