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.

Patricio Martín FXStreet

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

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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