NZD/JPY Price Analysis: Pair retreats to 87.50 as losses resume
- NZD/JPY fell to 87.48 on Friday, extending its weekly losses.
- Indicators are dangerously close to oversold conditions, signaling a potential correction.
- Bearish momentum remains intact, with risks of further downside.
The NZD/JPY pair extended its decline on Friday, falling to 87.48 as selling pressure intensified. This marks a continuation of the bearish trend that began earlier in the week, with the pair breaking below key support levels and showing no signs of recovery.
Technical indicators highlight the bearish outlook. The Relative Strength Index (RSI) is now approaching oversold territory, reflecting sustained selling pressure and suggesting that a potential correction may be on the horizon. Similarly, the Moving Average Convergence Divergence (MACD) indicator shows persistent bearish momentum, with steady red bars further reinforcing the downside risks.
For the bulls to regain control, a move back above the 88.00 level would be crucial, followed by a test of the 89.00 area. However, until a reversal is confirmed, the pair remains at risk of further declines, with immediate targets in the 85.00-86.00 range.
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.
