NZD/JPY: deeper drop needs confirmation

NZD/JPY: 87.54 Downside Obstacle!

The NZD/JPY pair is trading at 87.83 at the time of writing. As you can see on the H1 chart, the rate dropped below the uptrend line confirming exhausted buyers and that we may have a downside reversal. Now, it is moving sideways in the short term, which could be natural after the last strong drop.

The former low of 87.54 represents a downside obstacle. Despite dropping below the uptrend line, the rate could jump towards new highs as long as it stays above 87.54.

NZD/JPY Trading Conclusion!

Dropping below the 87.54 downside obstacle could announce a larger drop and may represent a new selling opportunity.