The NZD/JPY is climbing heading into the Tokyo session, stretching passed the 78.00 handle to kick off the new week. What more is discussed in this 12 March NZDJPY Technical Outlook?
12 March, GKFX – The Kiwi is continuing to bump upwards against the Yen after rebounding from a low of 75.93 at the beginning of March. The Bank of Japan (BoJ) stayed the course for interest rates last week, reaffirming their dedication to easy monetary policy, and after buying the Yen for so long on the back of tightening expectations, markets are beginning to loosen their grip on the Yen.
New Zealand Economy
The Reserve Bank of New Zealand (RBNZ) has been left to stand pat on interest rates as well as the New Zealand economy lags behind global growth trends, but the recent turnaround in Yen buying coupled with an optimistic outlook from the RBNZ is giving the NZD a chance to make up some lost ground after declining from a January peak of 81.56.
BoJ’s Monetary Policy Meeting Minutes
A thin week for macro data lies ahead, and the first notable entry for the pair will be the BoJ’s Monetary Policy Meeting Minutes dropping Tuesday at 23:50 GMT, where a further breakdown of sentiment within the central bank can be gleaned. January Machine Orders numbers will be released at the same time, and market analysts forecast a 5.6% upswing in the month-over-month data following December’s steep 11.9% contraction.
12 March NZDJPY Technical Outlook
The pair has climbed aggressively in March, but resistance lies ahead from the 34 EMA on Daily candles and H4 charts show the NZD/JPY stretching into support-turned-resistance from February. Intraday support is currently sitting at late-February’s swing low point of 76.65 and March’s low at 75.95, with resistance at old support near 78.35 and a swing high from mid-February at 79.30.
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