NZD/JPY may fall 65 - 97 pips

Our pivot point stands at 89.79.

Our preference

The downside prevails as long as 89.79 is resistance.

Alternative scenario

The upside breakout of 89.79, would call for 90.33 and 90.66.

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 below its signal line and negative. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 89.70 and 89.72).

Supports and resistances

90.66 **

90.33 *

89.79 **

89.58

89.33 last

88.68

88.36 **

88.03 *

87.71 **

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