NZD/JPY may fall to 87.95 - 89.63

Our pivot point is at 96.06.

Our preference

The downside prevails as long as 96.06 is resistance.

Alternative scenario

The upside breakout of 96.06, would call for 98.92 and 100.62.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 96.86 and 95.73). Finally, the NZD/JPY has penetrated its lower Bollinger band (93.47).

Supports and resistances

100.62 **

98.92 *

96.06 **

94.93

93.03 last

89.63

87.95 **

86.26 *

84.57 **

Number of asterisks represents the strength of support and resistance levels.