NZD/JPY Price Forecast: Edges higher on holiday trade, bulls to face key hurdles

• NZD/JPY trades sideways, with momentum neutral as RSI hovers at the 50 mark.
• Bulls need to clear 86.00 to target 87.73 and YTD high at 89.71.
• Break below 84.61 could expose support near 83.50 at top of Kumo.

NZD/JPY begins the week on a positive note after registering a gain of over 0.42% on Monday amid thin liquidity conditions, as the US and UK financial markets remained closed for a holiday. In the meantime, as Tuesday's Asian session begins, the cross-pair trades at 85.57, down 0.13% at the time of writing.

NZD/JPY Price Forecast: Technical outlook

The NZD/JPY trades sideways from a technical perspective, even though the Ichimoku Cloud (Kumo) analysis shows the pair is also tilted to the upside. This is because price action is above the Kumo, though capped on the upside by the Tenkan-sen at 85.67.

Momentum suggests that neither buyers nor sellers are in charge, with the Relative Strength Index (RSI) remaining at the 50-neutral line.

For a bullish scenario, the NZD/JPY needs to clear the Tenkan-sen and the 86.00 figure so buyers could challenge the latest cycle high of the May 13 high at 87.73. A decisive break will expose the year-to-date (YTD) peak at 89.71.

Conversely, for a bearish scenario to unfold, the NZD/JPY must clear the May 22 low of 84.61. If surpassed, the next support would be the top of the Kumo at around 83.50-83.75.

NZD/JPY Price Chart - Daily