NZDJPY has been trading sideways, moving inside a range with support at the 84.50 minor psychological mark and resistance around 85.20.

Price recently bounced off the top of the range and might be on its way to test the bottom again. However, the dynamic support around the moving averages and area of interest at the middle of the range might keep losses in check.

The 100 SMA is below the 200 SMA for now, so the path of least resistance is to the downside. The gap between the moving averages is narrowing, though, so a bullish crossover might be in order.

At the same time, stochastic is bottoming out in the oversold region to confirm that sellers are exhausted and that buyers might take over soon. RSI is starting to pull higher but has room to drop before reaching the oversold region.

Earlier in the week, New Zealand reported weaker than expected retail sales data for the second quarter of the year, suggesting that the central bank’s rate hikes are starting to impact spending.

Headline retail sales slumped 2.3% in Q2, following the earlier 0.9% decline, while the core figure showed a 1.6% drop. Analysts had been expecting to see 1.7% and 1.8% gains respectively.

Meanwhile, data from Japan has been somewhat upbeat, as the Tokyo core CPI rose from 2.3% to 2.6% versus the consensus at 2.5%. There are no major reports due from Japan in the next sessions, so the yen might be driven by market sentiment.

The ongoing Jackson Hole Symposium might impact risk-taking in the upcoming sessions, as top central bankers are scheduled to give speeches and share more insights on their monetary policy plans. Indications that more rate hikes are in the cards, particularly from the Fed, might bring risk-off flows back in and favor the lower-yielding yen.