NZD/JPY Price Analysis: Bears extend their control, aiming for 87.00

Source Fxstreet
  • The NZD/JPY pair fell sharply on Friday and reaching a low of 87.85.
  • The RSI has plunged to 36, indicating that the bears are in full control and the negative momentum is likely to persist.
  • Bears have the 87.00 threshold on their sight.

The NZD/JPY pair has maintained its bearish stance, extending the selloff that started in Tuesday's session. Technical indicators strongly suggest that the bears have the upper hand, and the pair could continue to decline in the coming days.

The Relative Strength Index (RSI) has reached 36 and approaches the oversold threshold. However, after the pair shed more than 3% this week, the cross might consolidate in the next sessions, as bears might run out of steam.

NZD/JPY daily chart

On the daily chart, the NZD/JPY pair is showing signs of sustained weakness. After having fallen below the 20-day Simple Moving Average (SMA) of 89.60, bears seem to have gained sufficient momentum to exert further downward pressure. If the selling continues, critical support levels appear at 87.50, 87.30, and 87.00.

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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