NZD/JPY Price Analysis: Pierces three-week-old resistance below 84.00 on RBNZ’s hawkish surprise
- NZD/JPY takes a U-turn from the key EMAs to renew multi-day top after RBNZ move.
- RBNZ surprises markets by announcing 0.50% rate hike, the 11th consecutive rate increase.
- Given the sustained bounce of the 50-EMA, 200-EMA, backed by upbeat RSI, the bulls are likely to keep the reins.
NZD/JPY rises to 83.86 as it pokes a three-week-long resistance line on the Reserve Bank of New Zealand’s (RBNZ) 11th rate hike during early Wednesday. In doing so, the cross-currency pair also portrays a clear rebound from the 50 and 200 Exponential Moving Averages (EMAs).
That said, the RBNZ surpasses market forecasts while announcing 50 basis points (bps) worth increase to its Official Cash Rate (OCR), lifting it to 5.25% from 4.75% prior. It’s worth noting that the RBNZ Minutes stated that the policymakers also discussed a 25 bps rate hike and hence prod the pair buyers of late.
Also read: Breaking: RBNZ raises rates by 50 bps to 5.25% in April, hawkish surprise
Even so, a successful rebound from the key EMAs joins the upbeat RSI (14) to allow the NZD/JPY buyers in poking a downward-sloping resistance line from mid-March, around 83.85 by the press time.
It’s worth noting that the March 15 high of near 84.10 can act as an extra filter towards the north for the NZD/JPY buyers before directing them to the previous monthly high of 85.33.
Meanwhile, pullback moves remain elusive unless the quote stays beyond the 50-EMA level of 82.80.
Following that, multiple supports near 81.50 and March’s bottom of around 80.45 can test the NZD/JPY bears ahead of highlighting the 80.00 psychological magnet.
NZD/JPY: Four-hour chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
