29 Apr 2015
NZD/JPY: Insight in to a possible reversal
FXStreet (Guatemala) - NZD/JPY is currently trading at 91.76 with a high of 92.07 and a low of 91.37.
NZD/JPY has been better bid overall today, caught up in the action around the US economy. There is more to come. We have the FOMC coming up first, but this is unlikely to spark any fireworks with the damage already done through the GDP Q1 result for the US, sending the greenback in to a spiral of disappear where the kiwi lapped up a good handful of pips and the Yen was breaking down towards last week's closing prices. This was leaving the cross picking up the pieces in flows. NZD/JPY traded in a chop between 91.50's and up to test 92 territory where further supply in USD/JPY capped the cross back down to current levels.
NZD/JPY is technically still within the bullish trend set down below 84 the figure at the start of Fed's business. However, the cross has been subject to flows in the greenback vs the Kiwi more so than the rage bound Yen. It is worth keeping an eye on the performance of the NZD from here on as it enters strong resistance territory and a range that the RBNZ will be monitoring intently as to their requirement for a weaker bird in respect of their exports and commodity prices.
The Reserve Bank of New Zealand will be announcing its decision a few hours after the FOMC statement today. While the RBNZ is on hold, the markets are gearing up for a more dovish statement. Given that the Central Bank had entered 2015 tipped for a rate hike at some stage, a shift in positioning may be coming which may ultimately cap the crosses recent bullish trend, certainly until markets decide to price in the possibility of the BoJ needing to expand the their QE programme. Kuroda continues to sound optimistic without being in a rush to act on their already aggressive policy. more of that to come this week in the BoJ meeting tomorrow.
NZD/JPY has been better bid overall today, caught up in the action around the US economy. There is more to come. We have the FOMC coming up first, but this is unlikely to spark any fireworks with the damage already done through the GDP Q1 result for the US, sending the greenback in to a spiral of disappear where the kiwi lapped up a good handful of pips and the Yen was breaking down towards last week's closing prices. This was leaving the cross picking up the pieces in flows. NZD/JPY traded in a chop between 91.50's and up to test 92 territory where further supply in USD/JPY capped the cross back down to current levels.
NZD/JPY is technically still within the bullish trend set down below 84 the figure at the start of Fed's business. However, the cross has been subject to flows in the greenback vs the Kiwi more so than the rage bound Yen. It is worth keeping an eye on the performance of the NZD from here on as it enters strong resistance territory and a range that the RBNZ will be monitoring intently as to their requirement for a weaker bird in respect of their exports and commodity prices.
The Reserve Bank of New Zealand will be announcing its decision a few hours after the FOMC statement today. While the RBNZ is on hold, the markets are gearing up for a more dovish statement. Given that the Central Bank had entered 2015 tipped for a rate hike at some stage, a shift in positioning may be coming which may ultimately cap the crosses recent bullish trend, certainly until markets decide to price in the possibility of the BoJ needing to expand the their QE programme. Kuroda continues to sound optimistic without being in a rush to act on their already aggressive policy. more of that to come this week in the BoJ meeting tomorrow.