The New Zealand dollar continued to strengthen against the Japanese yen following the rise in risk appetite, and the high-yielding current may continue to appreciate against its major counterparts as market sentiment improves.
[B]Currency Pair:[/B] NZD/JPY
[B]Chart: [/B]60 Min Charts
[B]Short-Term Bias:[/B] Flat
[B][U]Analysis[/U][/B]
The New Zealand dollar continued to strengthen against the Japanese yen following the rise in risk appetite, and the high-yielding current may continue to appreciate against its major counterparts as market sentiment improves. After reaching a high of 74.59 on 9/8, the NZD/JPY slipped to a low of 44.23 in February as traders curbed their appetite for higher risk/reward investments however, the rebound in market sentiment throughout the first half of the year has raised demands for carry trades, and the kiwi-yen may continue to push higher over the near-term as market participants anticipate the Reserve Bank of New Zealand to tighten monetary policy over the next 12 months. Over the next few hours of trading, we are likely to see the NZD/JPY fall lower to fill-in the gap from the 120 SMA at 61.02, with the bearish divergence in the RSI reinforcing the decline in the pair, and we may see the kiwi-yen work its way towards 59.40-50 (50.0% Fib) to test for support. At the same time, the rise in global equities paired with higher commodity prices may continue to support the appreciation in the New Zealand dollar as investors raise their appetite for risk. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
[I][B]Visit the [/B][/I][I][B]DailyFX Forex Stream[/B][/I] [I][B]for Real-Time News and Market Updates[/B][/I]
[I]To contact the author of this article, please email: <[email protected]> [/I]
[B][I][I] Related Articles:[/I][/I][/B]
[I][B]British Pound Crosses[/B][/I]
[I][B]COT Positioning Warns of Yen Weakness[/B][/I]
[I][B]Cable Could Be Looking to Carve Right Shoulder (Daily Classical)[/B][/I]
[B][I][I]US Dollar at Risk of Bearish Break from Consolidation[/I][/I][/B]