NZD/JPY Price Analysis: Pair stabilizes around 88.10 as bears take a break

• NZD/JPY stabilized at 88.10 on Wednesday after recent declines.
• The indicators flattened into negative territory, signaling a pause in bearish momentum.
• The bears remain in control, but oversold conditions could limit further immediate declines.

The NZD/JPY pair stabilized around 88.10 on Wednesday, following a drop earlier in the week that saw the pair approach the 88.00 level. Although the bears remain in control, the recent pause suggests a possible lull as technical indicators show signs of flattening into negative territory.

The Relative Strength Index (RSI) remains near oversold levels, currently at 32, reflecting moderate buying interest but signaling that further immediate declines could be limited. Meanwhile, the histogram of the Moving Average Convergence/Divergence (MACD) indicator continues to print in red but shows signs of stabilization, indicating a weakening of the bearish momentum. This technical setup could trigger a period of consolidation before the next directional move.

To the upside, a recovery towards the 89.00 level could challenge bearish control, with 90.00 serving as a key resistance level for the bulls. On the contrary, if bearish momentum resumes, the pair could retest the 88.00 level and potentially extend losses towards the 85.00-86.00 range.

NZD/JPY daily chart