NZD/JPY finds eight year high as Yen slumps, Kiwi heads for 90.50

The NZD/JPY is climbing into multi-year highs as broader markets flip on the risk switch.
Light data on the calendar for both currencies in the early week sees market sentiment the primary driver.
Up Next: Japan GDP figures due early Wednesday.

Joshua Gibson FXStreet

The NZD/JPY is chalking in multi-year highs as market sentiment surges and sends the safe haven Yen (JPY lower against the Kiwi (NZD). Tuesday's rally sees the Kiwi reaching its highest bids against the Yen in eight years.

New Zealand data remains limited on the economic calendar this week, though early Tuesday did see the NZ Food Price Index for October print at -0.9% compared to September's reading of -0.4%.

Wednesday's early market session will be seeing Japan Gross Domestic Product (GDP) figures for the 3rd quarter. Quarter-on-quarter GDP is forecast to decline from 1.2% to -0.1%, while the annualized reading is expected to steepen the decline from 4.8% to -0.6%.

NZD/JPY Technical Outlook

With the Kiwi's climb into 90.20, the NZD has rallied 1.5% against the Yen in a mere four hours, and the pair is set for a continued run towards 90.50 if bidders can keep the momentum going.

Intraday technical support sits at the top of the last swing high near 89.50, with dynamic support from the 200-hour Simple Moving Average (SMA) sitting just south of 89.30.

The NZD/JPY's previous long-term high was set at 90.20 back in September, and a second run at the high water mark is allowing the Kiwi to find some give in the Yen.

NZD/USD Daily Chart

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD challenges 1.1700, six-week lows

EUR/USD remains under heavy downside pressire in quite a dfrreadful start to the new trading week, putting the 1.1700 support to the test amid the marked rebound in the US Dollar. The flight-so-safety environment continues to support the Greenback following the escalating conflict in the Middle East.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold shifts its attention to $5,600 on fligh-to-safety mood

Gold climbs to levels last seen in late January past the $5,400 mark per troy ounce on Monday. The yellow metal’s strong uptick remains fuelled by incresing geopolitical tensions in the Middle East and the consequent demand for safer assets.

Bitcoin on brink of breakdown amid US-Iran war

Bitcoin (BTC) remains under pressure near the key support level of $65,700. Trading at $66,400 at the time of writing on Monday, a breakdown below this critical level would suggest a deeper correction ahead.

The week ahead: Conflict in the Middle East jolts markets

Events in the Middle East are obviously dominating financial markets this morning. The Brent crude oil price is extending gains and is higher by more than 8%, stock futures are pointing lower and the gold price is higher by more than 2%.

Pi Network Price Forecast: Core team offloads supply, weighing on PI recovery

Pi Network hovers below $0.1700, broadly steady at press time on Monday, attempting a recovery after a 2% loss the previous day. Sunday’s decline aligned with nearly 49 million PI tokens offloaded by the Pi Foundation, implying a spike in supply pressure that capped the prevailing four-day recovery.