The NZD/JPY pair experienced a sharp decline on Friday, hitting a low of 87.85 as bearish sentiment took over the market. With the Relative Strength Index (RSI) plummeting to 36, it is evident that the bears are dominating the scene and negative momentum is expected to persist. The bears have set their sights on the 87.00 threshold, indicating further downside potential for the pair.
In the current market environment, technical indicators point towards a continuation of the bearish trend for the NZD/JPY pair. Despite the RSI nearing oversold levels at 36, the recent 3% drop in the pair’s value suggests a consolidation phase may be on the horizon as bears may start to lose steam.
Analyzing the NZD/JPY Daily Chart
Looking at the daily chart, it is clear that the NZD/JPY pair is exhibiting sustained weakness. Breaking below the 20-day Simple Moving Average (SMA) of 89.60, the bears have gained momentum to push the pair lower. Critical support levels to watch for include 87.50, 87.30, and 87.00, which could act as key levels for potential rebounds or further downside movements.
Overall, the current market conditions indicate a bearish outlook for the NZD/JPY pair, with the potential for further declines in the near future. Traders and investors should closely monitor key support levels and technical indicators to make informed decisions about their positions in the market.