- NZD/JPY has experienced sideways movement in recent sessions, accompanied by sharp losses on Tuesday.
- The RSI is sharply declining, while the MACD histogram remains green but is decreasing, indicating a reduction in buying pressure.
- A drop below 90.00 could signal further downside potential.
The NZD/JPY pair fell by 0.60% to 90.70 during Tuesday's session, raising concerns about a potential reversal of the recent bullish trend.
Currently, the daily Relative Strength Index (RSI) sits around 52, indicating the pair remains in positive territory. However, the sharp decline in the RSI suggests waning buying pressure. Similarly, the Moving Average Convergence Divergence (MACD) histogram is green but decreasing, reinforcing the notion of weakening bullish momentum.
The 90.00 level is critical for the pair's near-term outlook. A drop below this support could lead to further losses, with the next psychological target at 89.50. Conversely, if the pair manages to hold above this level and buyers re-enter the market, a reversal could unfold, aiming for resistances at 91.00 and potentially 92.00, where the 20, 100, and 200-day simple moving averages converge.
NZD/JPY Daily Chart
