NZD/JPY may fall to 85.04 - 86.78

Our pivot point is at 93.84.

Our preference

The downside prevails as long as 93.84 is resistance.

Alternative scenario

The upside breakout of 93.84, would call for 96.79 and 98.55.

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 95.58 and 95.57).

Supports and resistances

98.55 **

96.79 *

93.84 **

92.68

91.20 last

86.78

85.04 **

83.31 *

81.58 **

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