NZD/JPY: Potential to retest the 79 area - Westpac

In view of Imre Speizer, Research Analyst at Westpac, NZD/JPY retains potential to retest the 79 area.

Key Quotes

“The yen was the best performing currency during the past week and past month, probably a reflection of tensions on the Korean peninsula.”

“There’s little on the agenda in the next week in Japan, with store sales Monday/ Tuesday and then the flash PMI on Thursday. It will be worth keeping an eye on the political situation with rumours developing over a potential snap election. Hard to see that having a material impact on the ¥ though.”

“3 months ahead: The BOJ’s defacto tapering of its asset purchases should be yen supportive. In addition, the Japanese economy is seeing a pickup in consumer activity, mitigating any slippage in external demand. The 84 area should cap this cross during the quarter ahead.”