NZD/JPY Price Analysis: Sellers remain in the driver's seat, pinning down the downside

• The NZD/JPY pair has been moving lower and broke below the key support of 87.50.
• A break below 87.00 could open the doors to a further decline towards 86.00.

The NZD/JPY pair has resumed its decline on Wednesday after failing to hold the 87.50 area. The pair is now testing the support level of 87.00, and a break below this level could open the doors to a further decline. In the meantime, indicators show that the sellers are in command.

The Relative Strength Index (RSI) is nearing the oversold area while the MACD is printing red bars, indicating that selling pressure is still strong and that the pair is likely to continue to decline.

NZD/JPY daily chart

Overall, the technical picture for the NZD/JPY pair is bearish. The pair is showing strong signs of a downtrend, with the RSI in an oversold area and with the MACD printing red bars. Supports to the downside are located at 87.00, 86.500, and 86.00 while resistances are seen at 87.50, 88.00, and 89.00.