NZD/JPY may fall 51 - 76 pips

Our pivot point stands at 88.30.

Our preference

The downside prevails as long as 88.30 is resistance.

Alternative scenario

The upside breakout of 88.30, would call for 88.71 and 88.95.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (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 88.48 and 88.77). Finally, the NZD/JPY has penetrated its lower Bollinger band (87.78).

Supports and resistances

88.95 **

88.71 *

88.30 **

88.14

87.61 last

87.10

86.85 **

86.61 *

86.37 **

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