Fears of a deepening recession in Japan have certainly weighed on the appeal of the Yen, and the low-yielding currency is likely to face headwinds over the near-term as the outlook for future growth remains bleak.
[B]Currency Pair:[/B] NZD/JPY
[B]Chart:[/B] 60 Min Charts
[B]Short-Term Bias: [/B]Flat
[B][U]Analysis
[/U][/B]
[B][U][/U][/B]
Fears of a deepening recession in Japan have certainly weighed on the appeal of the Yen, and the low-yielding currency is likely to face headwinds over the near-term as the outlook for future growth remains bleak. On the other hand, economic activity in New Zealand has weakened consider considerably as the isle nation faces its first recession in over a decade, and expectations for a rate cut by the RBNZ next week is like to weigh on the NZDJPY. After reaching a high of 56.32 in January, the kiwi-yen slipped to an eight-year low of 44.24 earlier this month, and the lack of momentum to break above 50.20-30 (50.0% Fib) should keep the pair range bound over the remainder of the week. Over the next few hours of trading, we are likely to see the kiwi-yen cross above 48.80-90 to fill-in the gap from the 120 SMA, and may attempt to cover the downward gap from the previous week however, as the RSI approaches overbought territory, gains to the upside are likely to be capped. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
[I]To contact the author of this article, please email: <[email protected]>[/I]
[B][I][I] Related Articles:[/I][/I][/B]
[I][B]Forex Technical and Fundamental Forecasts for March[/B][/I]
[I][B]GBP/USD: Trading the Bank of England Interest Rate Decision[/B][/I]
[I][B]Euro: Signs of an Early Uptrend[/B][/I]
[I][B]Euro Poised for Break of 2009 Lows (Cross Country)[/B][/I]