NZD/JPY consolidating between 80.50 and 82.50 levels - Westpac

According to Imre Speizer, Research Analyst at Westpac, NZD/JPY has been consolidating between 80.50 and 82.50 during the past two weeks, and it’s unclear which way it will break in the near term.

Key Quotes

“Both the NZD and JPY are weighed down by political uncertainty. In Japan’s case, it’s the October 22 general election. The event calendar highlights this week are the final PMI and then services and composite PMIs (Wed).”

“3 months ahead: The BOJ’s defacto tapering of its asset purchases should be yen supportive. In addition, the Japanese economy is seeing a pickup in consumer activity, mitigating any slippage in external demand. The 84 area should cap this cross during the quarter ahead.”