The NZD/JPY pulled back from the yearly high (65.94) as investors lowered their appetite for risk however, the pair looks to have found support near 62.90-63.00 (61.8% Fib), and may continue to push higher over the near-term as market participants speculate the Reserve Bank of New Zealand to tighten policy over the next 12-months.
[B]Currency Pair:[/B] NZD/JPY
[B]Chart: [/B]60 Min Charts
[B]Short-Term Bias:[/B] Flat
[B][U]Analysis[/U][/B]
The NZD/JPY pulled back from the yearly high (65.94) as investors lowered their appetite for risk however, the pair looks to have found support near 62.90-63.00 (61.8% Fib), and may continue to push higher over the near-term as market participants speculate the Reserve Bank of New Zealand to tighten policy over the next 12-months. After reaching a high of 74.59 on 9/8, the kiwi-yen slipped to a low of 44.23 in February as traders scaled back on high risk/reward investments however, the rebound in market sentiment paired with higher commodity prices have supported demands for carry trades, and the pair may continue to retrace the sell-off from the previous year as the outlook for global growth improved. At the same time, Credit Suisse overnight index swaps are higher by more than 100bp this month, and long-term expectations for a rate hike may continue to support the rise the pair. Over the next few hours of trading, we may see the NZD/JPY continue to push higher following the rise in global commodity prices however, the pair has continued to make lower highs and lower lows after reaching a fresh yearly high during the previous week, and we may see the pair work its way towards 62.90-63.00 (61.8% Fib) to test for support. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
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