6 Sep 2013
NZD/JPY dips below 79.00 zone; prints session lows
FXstreet.com (Chicago) - NZD/JPY cracked down to 78.83 lows despite the yen’s weakening dragged down by the Nikkei 225, index registering 0.88% losses so far.
Bulls give in, will the pressure last?
After the BoJ decision to maintain the interest rates at 0.1%, the most important date one month from now is October 2nd, the day after tankan survey results are due. The BoJ stated on Thursday’s press conference that the country needs a tax sales tax hike as soon as possible but the institution will not confirm its intention until after the tankan results are made public. In the meantime, commodity prices seem to stabilize pointing lower, perhaps temporarily, as the Syrian conflict and the US military strike fades off. Ahead of the BoJj monthly economic survey results along the leading economic and coincident indexes for July, the pair gives in to bearish pressure. The main concern in the minds of market participants seems to be the Fed’s tapering. US nonfarm payrolls for August are due later today and should provide an idea on how the monetary stimulus will be modified. The kiwi may be favored by positive results in the US while the yen will weaken on a stronger US economy.
NZD/JPY Technical Levels
Price action reveals the potential exhaustion of a bullish rally that started last August 27th. The pair soared from the 74.00 zone and now trades at 78.84 between supports at 78.69 (August 1st highs), 78.40 (August 15th lows) ahead of 78 (September 3rd highs) and resistances at 79.13 (September 4th highs), 79.70 (July 8th highs) followed by 80 (July 20th highs). The upward trendline is still respected although lower lows keep being recorded. According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis with a neutral EMA20.
Bulls give in, will the pressure last?
After the BoJ decision to maintain the interest rates at 0.1%, the most important date one month from now is October 2nd, the day after tankan survey results are due. The BoJ stated on Thursday’s press conference that the country needs a tax sales tax hike as soon as possible but the institution will not confirm its intention until after the tankan results are made public. In the meantime, commodity prices seem to stabilize pointing lower, perhaps temporarily, as the Syrian conflict and the US military strike fades off. Ahead of the BoJj monthly economic survey results along the leading economic and coincident indexes for July, the pair gives in to bearish pressure. The main concern in the minds of market participants seems to be the Fed’s tapering. US nonfarm payrolls for August are due later today and should provide an idea on how the monetary stimulus will be modified. The kiwi may be favored by positive results in the US while the yen will weaken on a stronger US economy.
NZD/JPY Technical Levels
Price action reveals the potential exhaustion of a bullish rally that started last August 27th. The pair soared from the 74.00 zone and now trades at 78.84 between supports at 78.69 (August 1st highs), 78.40 (August 15th lows) ahead of 78 (September 3rd highs) and resistances at 79.13 (September 4th highs), 79.70 (July 8th highs) followed by 80 (July 20th highs). The upward trendline is still respected although lower lows keep being recorded. According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis with a neutral EMA20.