NZD/JPY remains on the level after Syria strikes over the weekend

  • The Kiwi is holding steady as the safe-haven Yen remains on the sidelines.
  • The weekend's missile strikes in Syria have inspired little movement in the markets.

The NZD/JPY is holding steady to kick off the new week, trading near the 79.00 handle. Downside pressure remains though, and the pair is tending towards the lower side to close the week's opening gap into 78.90.

Market reaction to the weekend's developments were decidedly muted after a week of run-up in political tensions capped off with a coordinated missile strike against Syrian forces by the US, the UK, and France. As FXStreet's Ross Burland noted, "more than 100 missiles were fired against what they say were Syrian chemical weapons facilities. This came in response to a chemical weapons attack in a Damascus suburb a week ago. However, the move has proved globally divisive. Many have condemned the move as provocative and unacceptable and one may have thought that the week would have kicked off with gaps on the charts. The consequences of such action, are of course widespread on the geopolitical front where the US is butting heads with not only Russia over this, but Iran as well, the staunch allies of the Syrian president, Bashar al-Assad."

Markets have largely shrugged off the weekend's missile launches, possibly because the move was already priced in through the week's build-up.

The Kiwi heads into a fairly thin data week, although the New Zealand Food Price Index increased by 1.0 percent in March compared to the previous -0.5 percent decline. The Yen side is equally quiet, with nothing on the docket until Tuesday with low-tier Industrial Production figures at 04:30 GMT.

NZD/JPY Levels to watch

The pair has bounced from March's lows at 75.50, and last Friday's break higher sees the pair challenging the 200-day SMA at 79.35, and bulls will also have to mount last week's high at 79.60, but bears will see thinned out support from the 34-day EMA at 77.85 and last week's open near 76.80.

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