NZD/JPY rallies to multi-month highs due to dovish BoJ

The NZD/JPY rose to 91.05 on Thursday, registering a 0.70% rally.
The Yen was one of the worst-performing currencies due to dovish BoJ comments.
On the four-hour chart, overbought conditions suggest a possible correction in the near term.

Patricio Martín FXStreet

In Thursday's session, the NZD/JPY staged a rally to land at 91.05, buoyed by steady a softening Yen due to the Bank of Japan’s (BoJ) dovish stance. With the daily chart painting a bullish picture, the pair is tipped in favor of the Kiwi as the pair stands at its highest level since November. However, a potential correction looms on the horizon as the four-hour chart indicators strayed into overbought territory.

In line with that, Deputy Governor Uchida highlighted the unlikelihood of sudden rate hikes which drove markets to bet on a more dovish approach of the BoJ regarding its pivot to a more hawkish policy. For the next sessions, incoming data will be key to dictate the pace of the cross but in case Japan reports negative data, the cross could see further upside as the BoJ won't have incentives to leave its ultra-loose policy.

NZD/JPY technical analysis

The technical indicators on the daily chart reflect bullish dominance. Despite a consolidation looming in the immediate term, the cross is trending above its 20, 100, and 200-day Simple Moving Averages (SMAs), indicative of the buyers' stronghold on larger time frames. The rising slope and placement in the upper region of the Relative Strength Index (RSI) also reinforces the continued bullishness. Moreover, the Moving Average Convergence Divergence (MACD) histogram is demonstrating an uptick with the green bars becoming longer, further empowering the buying momentum.

NZD/JPY daily chart

On the shorter four-hour chart, however, a temporary pullback seems likely. The technical indicators have reached the overbought zone suggesting the possibility of an imminent correction. In this context, the Relative Strength Index (RSI) rose above 70 while the Moving Average Convergence Divergence (MACD) displays rising green bars. Given the intense buying pressure in the shorter time frame, a brief retreat in prices aligns with usual asset behavior after bouts of aggressive purchasing momentum.

NZD/JPY

Overview
Today last price	91.02
Today Daily Change	0.56
Today Daily Change %	0.62
Today daily open	90.46

Trends
Daily SMA20	90.27
Daily SMA50	89.9
Daily SMA100	89.42
Daily SMA200	88.08

Levels
Previous Daily High	90.7
Previous Daily Low	89.87
Previous Weekly High	90.72
Previous Weekly Low	89.26
Previous Monthly High	90.99
Previous Monthly Low	88.64
Daily Fibonacci 38.2%	90.38
Daily Fibonacci 61.8%	90.19
Daily Pivot Point S1	89.99
Daily Pivot Point S2	89.52
Daily Pivot Point S3	89.17
Daily Pivot Point R1	90.82
Daily Pivot Point R2	91.17
Daily Pivot Point R3	91.64

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

GBP/USD remains offered; bears target 1.3600

GBP/USD now leaves behind part of its recent recovery and revisits the low 1.3600s at the beginning of the week. Indeed, Cable trades with a mild downward bias amid decent gains in the Greenback as investors remain wary of upcoming US data releases and the Jackson Hole event.

EUR/USD remains sidelined above 1.1650

EUR/USD trades on the defensive following the closing bell on Wall Street on Monday, hovering around the 1.1660 region and adding to Friday’s small decline. The pair’s pullback comes in response to an acceptable rebound in the US Dollar in a context of generalised caution ahead of key US data releases and Chair Warsh’s speech in Jackson Hole.

Gold poised to extend its bullish run

Gold surrenders part of its initial advance, although it keeps its bullish pace well and sound above the $4,600 mark per troy ounce on Monday. The precious metal’s move higher comes despite slight gains in the US Dollar and a modest pullback in US Treasury yields across the curve.

XRP surged 72%, but is the rally really about XRP?

Ripple (XRP) surged more than 72% in less than a week, its strongest rally since July 2025, as cryptocurrency prices broadly broke out. But the move has a problem: it may have little to do with XRP itself. The token's near-term rally appears to have been driven largely by a broader liquidity shift after the US Treasury expanded long-end bond buybacks, pulling yields lower and lifting risk assets.

Convulsion in credit markets

The United States government just posted a $432.3 billion deficit for July, the largest monthly shortfall since March of 2021. That single burst of red ink pushed the yeartodate deficit to $1.8 trillion, with two months still remaining in fiscal 2026. At this pace, Washington will soon wax nostalgic for the “good old days” when annual deficits were only $2 trillion.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.