NZD/JPY Price Analysis: Pair struggles within 89.00-87.00 channel

• NZD/JPY slips to 87.55 on Monday, underscoring a cautious mood in the market.
• RSI hovers at 40 in negative territory, declining mildly and hinting at persistent bearish undertones.
• MACD histogram prints flat red bars, suggesting subdued momentum despite buyers' resilience.

The NZD/JPY pair edged lower at the start of the week, dipping to approximately 87.55. Price action remains confined to a sideways channel between 89.00 and 87.00, reflecting a market stalemate as both bulls and bears appear to resist a decisive breakout. Although buyers are attempting to absorb selling pressure, sentiment remains cautious in the face of waning momentum signals.

From a technical perspective, the Relative Strength Index (RSI) sits in negative territory at 40, indicating that sellers have yet to relinquish their advantage. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram shows flat red bars, illustrating a lack of follow-through on either side. Until the pair breaks clear of its prevailing range, short-term direction may remain muted.

Looking ahead, support remains anchored around the 87.00 zone, with a dip below that level potentially exposing the 86.50 handle. On the upside, a close above 89.00 would be needed to shift the pair's short-term bias more convincingly in favor of the bulls, targeting the 89.50-90.00 area for any subsequent advance.

NZD/JPY daily chart