NZDJPY Wave Analysis

The NZDJPY currency pair has recently reversed lower after testing a strong resistance zone bounded by the 95.15 horizontal level and the upper daily Bollinger Band. According to technical analysis from FxPro, this resistance level has repeatedly capped upward momentum and reversed price advances since May, confirming significant selling interest in this region. The downward reversal has effectively halted the earlier short-term impulse wave (iii) that originated in late July. Technical indicators further reinforce a bearish continuation, as the daily Stochastic oscillator displays overbought conditions, indicating that upside momentum is exhausted and a corrective phase is underway. Looking ahead, market strategists anticipate additional downward pressure for NZDJPY as sellers maintain control near the key ceiling. The primary downside target for the ongoing decline is the next support level situated at 94.35, with a break lower potentially opening the door to deeper technical corrections.