NZD/JPY Price Analysis: Pair retreats to 88.00 as bearish consolidation continues
- NZD/JPY declined by 0.69% on Tuesday, settling at 88.10 as selling pressure persists.
- Indicators consolidate losses, with RSI sharply declining to 39 and MACD printing flat red bars.
- Bearish momentum remains dominant, following a breakout from a sideways range between 90.00 and 92.00.
The NZD/JPY pair continued its downward trajectory on Tuesday, retreating to 88.10 amid ongoing bearish pressure. This decline builds on the pair's recent breakout from a clear sideways trading range between 90.00 and 92.00, signaling a shift in sentiment toward sustained selling.
Technical indicators confirm the bearish outlook. The Relative Strength Index (RSI) has declined sharply to 39, remaining in negative territory and reflecting intensifying downward momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator shows flat red bars, suggesting a pause in momentum as the pair consolidates recent losses.
For any recovery, NZD/JPY would need to reclaim the 88.50 level as a first step, followed by a test of the psychological 89.00 barrier. On the downside, the pair remains vulnerable to further declines, with immediate targets at 87.50 and potentially extending to the 85.00-86.00 support zone if bearish momentum persists.
NZD/JPY daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
