The NZD/JPY pair continues to show a bearish trend, breaking through important support levels with consistent negative movements. The possibility of a turnaround depends on a significant drop in the Relative Strength Index (RSI) into oversold territory.
Currently, the NZD/JPY pair has fallen below the key level of 89.00, experiencing a series of losses that reinforce a strong bearish momentum. Over the past few weeks, the currency pair has decreased by more than 7%, trading below the crucial 200-day Simple Moving Average (SMA).
Despite the ongoing downward movement, daily technical indicators like the RSI suggest extreme oversold conditions. This could signal a potential period of stability in trading, even as the pair continues to decline. With the RSI well below 20, it indicates an extended period of selling pressure that may precede a trend reversal. Additionally, the Moving Average Convergence Divergence (MACD) shows rising red bars, indicating an increase in selling momentum.
On the daily chart, the NZD/JPY pair is currently trying to maintain support levels at 87.00, 86.50, and 86.00, while facing resistances at 89.00 and the stronger 200-day SMA resistance around 92.00.
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