NZDJPY has been carving out a symmetrical triangle pattern on the short-term time frame, with lower highs and higher lows converging toward an eventual breakout.

Price is currently testing the upper boundary of the triangle near the 93.50 minor psychological level, and a rejection from this resistance zone could send the pair back toward triangle support around the 93.00 major psychological mark and potentially lower.

A sustained move below the triangle floor could set off a more significant decline, with the measured move of the formation pointing to a drop toward the 92.50 region or the swing lows near 92.00 and below.

On the other hand, a clean break above the descending resistance line could invalidate the bearish setup and open the door for a rally back toward the 94.00 handle.

The 100 SMA (blue) has crossed below the 200 SMA (red), suggesting that the path of least resistance is to the downside and that the selloff could gain traction over a breakout to the upside. Price is also hovering just beneath both indicators, which could act as dynamic resistance on any bounce and keep the bears in control.

Stochastic has turned lower after approaching the overbought area, reflecting a return in selling pressure that aligns with the rejection from triangle resistance. The oscillator has room to slide before reaching oversold levels, which means downside momentum could keep building.

RSI is also heading south from the midline without quite reaching overbought territory, suggesting that buyers failed to gain a firm foothold and that sellers may be ready to step back in.

NZDJPY is likely to take cues from the upcoming RBNZ decision, during which the central bank could lean toward a more dovish tone amid slowing domestic growth and easing inflation pressures. A more hawkish outcome, on the other hand, could allow support to hold and allow the pair to bounce back to resistance.