The NZD/JPY pair managed to eke out small gains on Monday, but the overall bearish sentiment remains dominant. The pair faces significant resistance at the 89.00 level, suggesting limited upside potential in the near term.
Technical indicators support the bearish outlook. The Relative Strength Index (RSI) remains in oversold territory, indicating strong selling pressure. While the Moving Average Convergence Divergence (MACD) is showing signs of weakening bearish momentum, it has yet to confirm a bullish trend reversal.
Key Levels to Watch
- Resistance: 89.00
- Support: 88.00, 87.80-88.50 area
A decisive break above 89.00 could signal a potential shift in momentum, with the next target at the 90.50 level (20-day SMA). Conversely, a breakdown below 88.00 would likely intensify downward pressure, potentially leading to a test of the 87.80-88.50 support zone.
