Sellers remain in the driver’s seat, holding the downside

• NZD/JPY moved lower and broke below the key 87.50 support.
• A break below 87.00 could open the door to a further decline towards 86.00.

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

The Relative Strength Index (RSI) is approaching the oversold zone, while the MACD is printing red bars, indicating that selling pressure is still strong and 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 downtrend signs, with the RSI in an oversold zone and the MACD printing red bars. Supports on the downside are located at 87.00, 86.500 and 86.00, while resistances are seen at 87.50, 88.00 and 89.00.