NZD/JPY Price Analysis: Bullish momentum fades, downside risks emerge

• NZD/JPY has been on a sideways move for the past few sessions, with heavy losses in Tuesday’s session.
• The RSI is declining sharply, the MACD histogram is green and decreasing, suggesting that buying pressure is decreasing.
• A break below 90.00 could confirm further downside potential.

The NZD/JPY pair fell 0.60% to 90.70 in Tuesday’s session and threatens a reversal in recent bullish moves.

The daily Relative Strength Index (RSI) is currently around 52, indicating that the pair is in the positive area. However, the RSI is declining sharply, suggesting that buying pressure is easing. The histogram of the Moving Average Convergence/Divergence (MACD) indicator is green and decreasing, suggesting that buying pressure is decreasing. The direction of the MACD histogram is green and decreasing, confirming the bearish momentum.

The 90.00 level is crucial for the pair’s near-term outlook. A break below this support could open the door to additional losses, potentially pointing to the next psychological support at 89.50. However, if the pair finds support above this level and buyers intervene, a reversal could occur, targeting resistances at 91.00 and potentially 92.00, where the 20, 100 and 200 day simple moving averages converge.

NZD/JPY daily chart