In a significant move, the NZD/JPY pair sharply declined below the 90 level, hitting a low of 89.20 in Wednesday’s trading session. This drop indicates a strong selling pressure and struggles to break through key resistance levels.
The pair faces resistance at 90.50, with crucial support seen at 88.70. Technical indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) point towards a bearish momentum, with RSI showing oversold conditions at 15 and MACD displaying persistent bearish signals.
While a potential corrective bounce could be on the horizon due to the oversold RSI, the overall trend remains bearish, with volume trends suggesting sustained selling pressure.
Analysis:
The NZD/JPY pair has experienced a sharp decline below the 90 level, indicating a strong selling pressure and struggles to break through key resistance levels. Technical indicators suggest a bearish outlook, with the RSI indicating oversold conditions and MACD showing persistent bearish momentum. While a potential upward correction may occur due to the oversold RSI, the overall trend remains bearish.
Investors should closely monitor the key support level at 88.70 for any potential rebounds, while keeping an eye on resistance at 90.50 for a possible trend reversal. Understanding these key levels and technical indicators can help investors make informed decisions about their trading strategies in the NZD/JPY pair.