After the RBNZ’s widely expected single cut on 28 May, NZDJPY made some gains amid unusually low volatility. Trade talks are in focus for both the Kiwi dollar and the yen with Japan in particular holding negotiations with the USA about which senior members of the BoJ have commented. Last week’s auction of 20-year Japanese bonds saw the weakest demand in more than a decade, prompting rumours that the Japanese ministry of finance might reduce the availability of such very long-term bonds. Meanwhile in monetary policy the differential is likely to remain at least 2.25% until the end of the year.
Compared to NZDUSD, here there might be more potential for gains. The price did briefly break above ¥87 this month although the reaction from there was quite strong. The slow stochastic is also still close to oversold, having recently completed a crossover on the border of the trigger zone. ¥84 is a possible short-term support.
A sustained movement above the 200 SMA and ¥87 would probably need a strong fundamental driver of some sort. That might come from some kind of development in various trade negotiations since usually the Kiwi dollar is more trade-sensitive than the yen. Trade data from New Zealand late on 2 June GMT probably won’t drive a large movement unless the results are very surprising, but Japanese GDP late on 8 June GMT could have a significant effect.
This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.
Compared to NZDUSD, here there might be more potential for gains. The price did briefly break above ¥87 this month although the reaction from there was quite strong. The slow stochastic is also still close to oversold, having recently completed a crossover on the border of the trigger zone. ¥84 is a possible short-term support.
A sustained movement above the 200 SMA and ¥87 would probably need a strong fundamental driver of some sort. That might come from some kind of development in various trade negotiations since usually the Kiwi dollar is more trade-sensitive than the yen. Trade data from New Zealand late on 2 June GMT probably won’t drive a large movement unless the results are very surprising, but Japanese GDP late on 8 June GMT could have a significant effect.
This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.