How to rigorously prove the following continued fraction identity?

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The following identity seems to be satisfied for any $z \in C$

$$\cfrac{z^2}{1+z^2-\cfrac{z^2}{1+z^2-\cfrac{z^2}{1+z^2-\cfrac{z^2}{1+z^2-\cdots}}}}=\begin{cases}1 & |z| \geq 1\\z^2 & |z| \leq 1\end{cases}$$

I checked it numerically for real and for complex numbers.

If we assume that the limit exists, we have:

$$\cfrac{z^2}{1+z^2-\cfrac{z^2}{1+z^2-\cfrac{z^2}{1+z^2-\cfrac{z^2}{1+z^2-\cdots}}}}=y$$

$$\cfrac{z^2}{1+z^2-y}=y$$

$$y_1=1,~~~~~~~y_2=z^2$$

This solution doesn't tell us when to use $y_1$ and when to use $y_2$.

I think I can prove the second solution for $|z| < 1$ by transforming the continued fraction into geometric series by Euler's formula:

$$\frac{1}{1-y}=\cfrac{1}{1-\cfrac{z^2}{1+z^2-\cfrac{z^2}{1+z^2-\cfrac{z^2}{1+z^2-\cdots}}}}=1+z^2+z^4+z^8+\dots=\frac{1}{1-z^2}$$

But I'm not sure how to prove the case of $|z| \geq 1$.


Edit

Of course, I can use the same way for $|z| > 1$:

$$\frac{1}{1-\frac{y}{z^2}}=\cfrac{1}{1-\cfrac{\frac{1}{z^2}}{1+\frac{1}{z^2}-\cfrac{\frac{1}{z^2}}{1+\frac{1}{z^2}-\cdots}}}=1+\frac{1}{z^2}+\frac{1}{z^4}+\frac{1}{z^8}+\dots=\frac{1}{1-\frac{1}{z^2}}$$

$$y=1$$

And the case for $|z| = 1$ seems to be self-evident. Still, I'm not sure if those proofs are rigorous.