• NZD/JPY fell 0.79% on Monday, trading near 88.05.
• After breaking out of a range last week, bears pushed NZD/JPY lower, towards 88.00.
• Indicators continue losing ground but approach oversold conditions which might trigger a period of consolidation.

The NZD/JPY declined by 0.79% to 88.05 on Monday, after breaking out of a clear side-ways range last week. The Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicators are losing ground and confirm the selling pressure, and the outlook is now bearish, at least for the short-term.

In that sense, the RSI is in the oversold area, signaling rising selling pressure, while the MACD is also indicating that bearish momentum is increasing. The RSI suggests oversold conditions, may trigger consolidation, but the indicators' continued decline indicates that the downtrend is likely to persist. In case the cross corrects upwards, the bulls might attempt to recover the 89.00 area, and if lucky, they might extend a recovery to 90.00. On the downside, the selling traction is strong enough to continue pushing the pair towards the 85.00-86.00 range if the buyers don’t step in.

NZD/JPY daily chart