NZD/JPY still hanging around yesterday’s close after Japan inflation fails to spark. Check the 23 February NZDJPY Technical Outlook to see what level it trades.
23 February, GKFX – NZD/JPY is bouncing around yesterday’s bottom in Tokyo trading, testing the waters around 78.30 as of writing. NZD/JPY is catching a bit of a bump following positive inflation figures for Japan sending the Yen lower, as traders poke their heads out of the safety of the JPY to trade tentatively in risk assets.
Consumer prices excluding fresh food came out of Japan at 0.9%, a beat over the forecast 0.8%, and Asia markets are up on the news, sapping buyers out of the Yen while they explore equities and other assets on confidence.
Lack of NZ data & Strong Yen bids Impact
The Kiwi has spent 2018 declining against the Yen, with sluggish growth for New Zealand coupling with ever-increasing JPY strength to keep the pair low throughout January and February.
The incoming head of the Reserve Bank of New Zealand (RBNZ), Adrian Orr, who will officially to take over in March, is widely expected to keep the RBNZ’s current policies and targets where they are. Orr previous headed up the NZ central bank before departing in 2007 to take part in the New Zealand Super Fund.
23 February NZDJPY Technical Outlook
The pair is still stuck in a long-term pennant chart pattern spanning 2017, and the price is currently trading at the bottom of a recent consolidation range; a break-and-hold above 79.20 or below 78.23 will be needed to establish further moves in either direction, though with the Bank of Japan (BOJ) recently cautioning markets that intervention isn’t off the cards if the Yen doesn’t start to weaken, downside moves for the pair may be limited in the coming months.
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