- NZD/JPY extends downtrend by breaking below key support.
- Technical indicators point to further downside potential.
- The overall picture shows that the pair is stuck in a side trading channel.
During Friday’s session, NZD/JPY fell 1.20% to 91.00, continuing its downward momentum. This break below the key support level of 91.00 and the convergence of the 20- and 100-day plain moving averages (SMAs) further confirms the strength of the selling pressure.
Analysis of technical indicators shows a bearish outlook. The relative strength index (RSI) has fallen into negative territory and is falling sharply, indicating increasing selling pressure. The Moving Average Convergence Divergence (MACD) also indicates increasing selling momentum as the histogram is red and rising.
Based on these observations, the NZD/JPY pair is expected to continue its downtrend. The initial support level to watch is 90.80, then 90.50, then 90.30. On the upside, the first resistance level is 91.50, then 91.80 and 92.00.
