The NZD/JPY pair has been extending its downtrend, breaking below a key support level in recent trading sessions. Technical indicators are pointing towards further downside potential, with the pair stuck in a sideways trading channel overall.
During Friday’s session, the NZD/JPY declined by 1.20% to 91.00, continuing its bearish momentum. This move below the crucial 91.00 support level and the convergence of the 20 and 100-day SMAs further confirm the strength of the selling pressure.
The analysis of technical indicators paints a bearish picture for the pair. The RSI has fallen into negative territory and is declining sharply, indicating increasing selling pressure. The MACD is also signaling rising selling momentum, with the histogram in red and on the rise.
Given these signals, the NZD/JPY pair is expected to continue its downward trajectory. The initial support levels to watch are 90.80, 90.50, and 90.30, with resistance levels at 91.50, 91.80, and 92.00.
In conclusion, the NZD/JPY pair is facing strong selling pressure, with technical indicators suggesting further downside potential. Traders should keep an eye on key support and resistance levels to gauge the pair’s future direction in the coming trading sessions.
