The NZD/JPY continues its drop into the Tokyo session, backing into 77.00 as of writing. The pair churned lower in Thursday’s trading as risk aversion takes a chunk out of risk-based assets and send traders back into the Yen once more. What else is discussed in this 16 March NZDJPY Technical Forecast?
16 March, GKFX – Trade war fears, political turmoil in the US from the ongoing Mueller investigation into possible Russia-Trump collusion, and the Japanese land sale scandal sap risk appetite out of the broader markets.
Risk sentiment flaring up on political turmoil from both sides of the Pacific
Trump’s tariffs on steel and aluminum imports shook market confidence recently, sparking initial fears of a possible trade war on the back of Trump’s saber-rattling, and the fears are growing as Trump has threatened an additional $60B in tariffs directly singling out China and traders are bracing themselves for China’s reaction on the matter.
Special Council Investigator Bob Mueller’s subpoena of the Trump Organization on Thursday also helped weigh down risk appetite near the end of the New York session, as the search for evidence of a Russia-Trump collusory tie draws the investigation closer to Trump’s inner circle.
Japanese land sale scandal
Further taking the top off risk sentiment in Asia is the ongoing Japanese land sale scandal following revelations that Prime Minister Shinzo Abe knew about forged documents a full six days before the public was informed of a questionable sale of land to a school operator with personal ties to the Prime Minister and his wife.
Sentiment will be leading currencies by the nose heading through the Asia session with little data left on the week’s calendar to come out.
16 March NZDJPY Technical Forecast
The pair has ended lower for two straight days and looks on pace to do so for a third, having been rejected from resistance at the 34 EMA, currently sitting at 78.15. Further support can be found at the previous swing high of 77.65, and support is sitting at last week’s low of 75.93 and a swing low at 76.84.
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