NZD/JPY bounce to extend to around 78.80 - Westpac

Imre Speizer, Research Analyst at Westpac, explains that the multi-month decline bounced off the 76.00 area for NZD/JPY cross as risk sentiment improved following the French election first round as the Middle East or North Korea remains risks, but assuming no adverse news on that front during the week ahead, Westpac expects the bounce to extend to around 78.80.

Key Quotes

“This week we will be watching the BoJ (Thu) for clarity on its bond purchase program (is it still buying JPY 80tr/yr?).”

“3 months ahead: The BOJ’s defacto tapering of its asset purchases should support the yen. In addition, bouts of Trump disappointment will weigh on risk sentiment and boost the safe-haven yen. We see NZD/JPY remaining below 80 over the next few months.”