- Wednesday's session saw the NZD/JPY pair continue its decline.
- The cross has now marked a six-day losing streak now down 1.50% over the week.
- Oversold conditions might signal a looming correction.
On Wednesday, the NZD/JPY pair witnessed a further drop to land at 95.00. This continuous decline has extended the ongoing six-day losing streak. The overall loss, compared to the previous week is now seen at over 1.50% which has continued to defy the short-term outlook. That being said, as the downwards movements might be over-extended, the pair might correct to the upside somewhere in the next sessions.
The daily technical indicators not only persist under the bear's control but also enter the oversold conditions. The Relative Strength Index (RSI), currently at 28, has descended further into oversold territory, supporting a strengthened bearish sentiment. Concurrently, the Moving Average Convergence Divergence (MACD) is seen to print rising red bars, portraying continuous selling pressure.
NZD/JPY daily chart
Synchronizing with the ongoing bearish tone, immediate support levels are now spotted lower at 94.50 and the key level at 94.00. A drop below these levels, especially the strong support at 94.00, may affirm the bear's dominance in the short term. On the flip side, the resistance levels are now repositioned at the previous support levels of 95.00, 95.50, and 96.00.
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