NZD/JPY spinning in place in quiet markets to start the week
|- Kiwi sideways against the Yen on quiet markets.
- RBNZ dovishness capping the Kiwi's upside potential.
NZD/JPY is struggling to pick a direction to start the week, trading around 78.80 in light Asia trading.
The Kiwi has given up ground to the Yen in rough trading in February, with NZ's central bank, the Reserve Bank of New Zealand (RBNZ), burying any hopes of interest rate increases for the island country anytime soon, with the RBNZ strongly suggesting they wouldn't be afraid to wait until 2020, and haven't taken the option of further reate decreases off the table as economic data from New Zealand continues to be mixed, disappointing traders and central planners alike.
With risk aversion playing heavily into market sentiment as inflation fears stoke for the first time in nearly a decade, with equities off their recent record highs and bond yields spiking, sending traders into safe haven assets like the Yen, giving the Japanese currency a boost against its major trading pairs.
NZD/JPY Technicals
The Kiwi is pricing lower against the Yen on rough trading, with resistance for any bullish pullbacks at 79.52 and the 80.00 psychological handle. Long term the pair is trending roughly lower on high volatility, and the recent turnaround from the 81.30 region could imply a push lower into the 76.50 region if bearish sentiment takes hold.
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