In Tuesday’s trading session, the NZD/JPY pair extended its decline, reaching a low of 92.60, representing a 1.30% decrease. This marks the ninth session out of the last ten with losses, intensifying the bearish trend. Since the start of July, the pair has plummeted by 5%, breaking below the critical 100-day Simple Moving Average (SMA).
Despite the ongoing downward movement, technical indicators indicate potential for a reversal. The Relative Strength Index (RSI) is at 23, signaling oversold conditions. The Moving Average Convergence Divergence (MACD) also shows persistent selling pressure with rising red bars.
NZD/JPY Daily Chart Analysis
With the pair below 93.00, support is crucial at 92.50 to prevent further declines, followed by the 200-day SMA at 92.00 as a final defense. Resistance levels are at 93.00, 93.50, and 94.00.
How Does This Impact Your Finances?
If you are trading the NZD/JPY pair, it is essential to monitor the current bearish trend and potential reversal signals. Consider setting stop-loss orders to manage risk and be prepared for potential price movements. Consult with a financial advisor to make informed decisions based on your investment goals and risk tolerance.