• NZD/JPY sharply declined below 90.
• Resistance is seen at 90.50, while key support is at 88.70.
• RSI indicates oversold conditions, and MACD shows persistent bearish momentum.

In Wednesday's session, the NZD/JPY declined by more than 1% to 89.20, its lowest level since January. This drop reflects increased selling pressure as the pair continues to struggle below key resistance levels.

The pair encountered resistance at 90.50, a level it has failed to breach in recent sessions. If the downward trend continues, immediate support is expected around 88.70, a crucial level to watch for any potential rebounds. Technical indicators suggest a bearish outlook. The Relative Strength Index (RSI), currently at 15, signals oversold conditions, hinting at possible corrective bounces. However, the Moving Average Convergence Divergence (MACD)  flat red bars indicate ongoing bearish momentum. Volume trends reinforce this sentiment, suggesting sustained selling pressure without significant buying interest to counteract it.

However, the deep oversold conditions of the RSI might prompt an upward correction.

NZD/JPY daily chart