Bears extend their control, targeting 87.00

• NZD/JPY fell sharply on Friday and hit a low of 87.85.
• The RSI has fallen to 36, indicating that the bears are in full control and that the downside momentum is likely to persist.
• Bears have the 87.00 threshold in sight.

The NZD/JPY pair maintained its bearish position, extending the sell-off that started in Tuesday’s session. Technical indicators strongly suggest that the bears have the upper hand and the pair could continue to decline in the coming days.

The Relative Strength Index (RSI) has reached 36 and is approaching the oversold threshold. However, after the pair lost more than 3% this week, the cross could strengthen in the coming sessions as the bears could run out of steam.

NZD/JPY Daily Chart

On the daily chart, the NZD/JPY pair is showing signs of sustained weakness. After falling below the 20-day simple moving average (SMA) of 89.60, the bears appear to have gained enough momentum to exert further downward pressure. If the selling continues, critical support levels appear at 87.50, 87.30 and 87.00.