• The New Zealand dollar edges lower some 0.07%.
• A downbeat market sentiment triggered a sell-off of risk-sensitive currencies, boosted safe-haven peers.
• NZD/JPY is neutral-bearish after a break below the 200-DMA lying at 78.15.

As the Asian Pacific session begins amid a risk-off market mood, the NZD/JPY failed to break above the confluence of the 50 and the 100-day moving averages (DMAs), is trading at 77.85 at the time of writing.

As previously mentioned, US equity markets finished in the red, a trend that began on Friday, January 7. A mixed US Nonfarm Payrolls report, alongside “hawkish” Federal Reserve minutes, triggered a jump in global bond yields, particularly US Treasuries, to the detriment of risk-sensitive currencies, like the New Zealand dollar.

NZD/JPY Price Forecast: Technical outlook

On Monday, the NZD/JPY plunged some 95-pips in the session, from 78.53 to 77.54, and even broke below the 200-day moving average (DMA) at 78.15. However, since the middle of the North American session, the NZD gained some ground against the Japanese yen but failed to reclaim the 200-DMA alongside the neckline of the double-bottom formation.

That said, the NZD/JPY is neutral-bearish, and the first support on the way down would be the January 10 daily low at 77.58. A clear break of that level would expose December 22, 2021, a daily low at 76.91, followed by December 20, 2021, a cycle low at 76.02.

To the upside, the pair’s first resistance is December 16, 2021, daily high at 77.98. A breach of the latter exposes the 200-DMA at 78.15, followed by the confluence of the 50 and 100-DMA around 78.48-60.