NZD/JPY Price Analysis: Sellers Moved In, As a Bearish-Pennant Emerges

NZD/JPY failed to gather upward/downward momentum throughout Wednesday's session, and as Thursday's Asian Pacific day begins, it is meandering near this week's lows. At the time of writing, the NZD/JPY exchange rate was nearly flat at 82.87.

The daily chart for NZD/JPY depicts the cross-currency pair as neutral to slightly bearish, however it failed to gain momentum on Wednesday. A doji surfaced at the bottom of the week of 82.65, which could intensify a consolidation in the near term. If that scenario plays out, the NZD/JPY will trade within the 82.65-83.00 for the balance of the session unless a catalyst pushes the NZD/JPY to break above/below the range.

Upwards, the NZD/JPY initial barrier would be the 20-day Exponential Moving Average (EMA) at 83.44, ahead of the 200-day EMA at 83.85. On the downside, the next support for the NZD/JPY would be the weekly lows at 82.65, followed by the psychological 82.00 level.

The creation of a bearish pennant on the NZD/JPY 1-hour chart in the near-term signals that further declines are imminent. A break below the pennant bottom-trendline will open the way for more losses, with the first leg of the decline targeting the S1 daily pivot at 82.62.

Next stop for the NZD/JPY downtrend would be the S2 pivot at 82.44, followed by the S3 daily pivot at 82.24.