Currency market: AUD/JPY and NZD/JPY long term targets

Brian Twomey Brian's Investment

AUD/JPY long term targets must break 97.19 then 96.68, 96.11, 93.40. AUD/JPY bottom over next weeks and months is located at 93.40 and 91.76.

NZD/JPY must break below 90.66 then 89.90, 86.80 and a big bottom line at 85.12 and 83.87

BOJ March meeting 2%, April and June 7%, August 11% and September 16%. The BOJ isn't moving on anything and not anytime soon.

To take the interest rate system from negative to positive requires a massive adjustment for foreign and domestic banks, corporates, insurance companies.

What will the new system look like, how will it trade, how to factor trades, what affects to USD/JPY, Exports, GDP, inflation. The new system to positive will have funny quirks as all central bank interest rate systems and must be addressed and tested before implementation.

USD/JPY for YCC = 120.00's to 190.00's. YCC elimination is the first big event for the BoJ is YCC is not required. The BoJ has plenty of money invested in bonds from 2 to 10 year JGB's to rescue yields and USD/JPY if either trades off kilter.

USD/JPY trades below 148.20. Over next weeks, here's highs and lows. 149.93, 149.15, 149.05, 148.36.

Lows: 147.56, 147.27, 146.47, 145.79, 145.70, 144.94.

January Consumer spending down 6.3%, and down for 11 straight months. Exports and Imports factor as monthly Exports 1.3 Vs Imports 1.1. Yearly 8.8 Exports Vs 0.2 Imports. Oil on the import side remains a problem at -0.32.

Author

Brian Twomey

Brian's Investment

Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.

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