The NZD/JPY currency pair experienced a significant decline on Friday, breaking below a crucial support level and signaling a potential intensification of the bearish trend.
Key Factors Driving the Downward Trend:
- Technical Indicators: The Relative Strength Index (RSI) has dipped into negative territory, indicating strong selling pressure. Additionally, the Moving Average Convergence Divergence (MACD) is displaying a bearish signal, further confirming the downward momentum.
- Broken Support Level: The pair’s breach of the 91.00 support level, coupled with the convergence of the 20 and 100-day Simple Moving Averages (SMAs), reinforces the bearish outlook.
Potential Price Targets:
- Downside:
- Immediate support: 90.80
- Subsequent support levels: 90.50 and 90.30
- Upside:
- Immediate resistance: 91.50
- Further resistance levels: 91.80 and 92.00
Also read : USD/CHF Price Action- Understanding The Impact Of Trendline Breaks And Moving Averages
Overall Outlook:
The bearish momentum in the NZD/JPY pair appears to be gaining strength. Given the current technical indicators and the recent price action, it is likely that the pair will continue its downward trajectory in the short term. However, traders should remain vigilant and monitor for potential shifts in market sentiment.
