The yen is the worst performing major currency over the past few months, partly due to global risk sentiment which remains elevated and as a result, Imre Speizer, Research Analyst at Westpac, suggests that for NZD/JPY’s next major upside target is 83.80.
“The main event this week will be the BoJ monetary policy statement on Thursday. The glacial rise in headline inflation (let alone core) could see the BoJ downgrade its CPI forecasts and signal a longer wait before its 2% target is reached.”
“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 early signs are promising although more evidence is required before markets fully buy into the emerging Japanese story. We see NZD/JPY gains thus limited to the 84 area.”
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