- NZD/JPY fell to 87.48 on Friday, extending its weekly losses.
- Indicators are dangerously close to oversold conditions, signaling a potential correction.
- The bearish trend remains unchanged, which may involve the risk of further declines.
NZD/JPY continued its decline on Friday, falling to 87.48 as selling pressure increased. This marks a continuation of the bearish trend that began earlier in the week when the pair broke below key support levels and showed no signs of recovery.
Technical indicators highlight the bearish outlook. The Relative Strength Index (RSI) is currently approaching oversold territory, reflecting continued selling pressure and suggesting a potential correction may be on the horizon. Similarly, the Moving Average Divergence (MACD) indicator shows a continued downtrend, with solid red bars further reinforcing the downside risk.
For the bulls to regain control, a return above the 88.00 level and then a test of the 89.00 area would be crucial. However, until the reversal is confirmed, the pair remains at risk of further declines, with immediate targets in the 85.00-86.00 range.
