The NZD/JPY currency pair is currently in a consolidation pattern after a three-day winning streak, hovering around the 88.000 level. Despite mixed technical signals, there are indications of a potential reversal in the near future.
The Relative Strength Index (RSI) is at 30, suggesting that the pair is oversold but could see a recovery. The Moving Average Convergence Divergence (MACD) is showing decreasing red bars, indicating a decrease in selling pressure. Additionally, shrinking trading volume suggests that selling pressure is waning, which could benefit the bulls.
The bulls are aiming to push the pair towards the 88.50 resistance level, with a potential breakout leading to further gains towards 89.00. Conversely, a bearish scenario could see the pair dropping below 88.00 towards the 87.50-87.00 support zone.
Overall, the technical signals for the NZD/JPY currency pair suggest a potential reversal in the near future, with both bulls and bears closely monitoring key resistance and support levels.