NZD/JPY Price Analysis: Bears make a stride, threatening a drop to 88.00
|- NZD/JPY declined by 0.90% on Wednesday and resumes de losses.
- The RSI remains near 30 suggesting intense selling pressure.
- The MACD prints flat green bars, indicating that the bearish momentum is neutral.
The NZD/JPY pair extended its losses on Wednesday, declining to 88.35. The pair has been in a downtrend since the beginning of the month, and technical indicators continue to suggest that the bears are in control. A short period of recovery was seen in the last sessions but the overall outlook remains bearish.
The Relative Strength Index (RSI) is near 30, indicating that the pair is nearing oversold territory. Additionally, the Moving Average Convergence Divergence (MACD) prints flat green bars, indicating that the momentum is neutral.
The NZD/JPY pair has broken below the support level of 88.50 and is currently trading around 88.35. If the pair continues to decline, it could find support at 88.00 and 87.50. On the upside, resistance can be found at 89.00 and 89.50. A sustained break above 89.50 could signal a reversal of the downtrend. The volume has been declining during the last sessions, which is another sign of weakness.
NZD/JPY daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.