Can NZD/JPY hold 82.35 (the 50dma) support level again?

FXstreet.com (Barcelona) - It was a roller coaster of a day for NZD/JPY, trading as low as 81.13 at one point before finding support and edging all the way back to close the day down 24 pips at 82.86.

The FXStreet.com Trend Index remains in slightly bearish set up on the daily chart, while the OB/OS index reads neutral. The RSI (14) is consolidating at the 45.54 level, maintaining the bullish range between 40 and 80. This will be an important development to follow, as the pair has not seen a bearish RSI shift (into the 20-60 zone) since early September 2012.

The pair is now trading below both the 9 and 20dma’s which could help to limit any major advances to the upside in coming sessions. Keep an eye on support near the 82.35 (the 50dma), as the pair has not closed below it since October 2012. Should this development happen, it would be a bearish development and could lead to further selling down near the 79.66 (100dma).