NZD/JPY: see gains thus limited to the 83 area - Westpac

Ross J Burland FXStreet

Analysts at Westpac gave an analysis for NZD/JPY.

Key Quotes:

"Global risk sentiment remains elevated, supporting the NZD and hurting the safe-haven yen. There is scope for the ris to be sustained towards the 82.50 area. The end of the month is nigh, and with it what is likely to be a more pronounced weakening in the inflation pulse in Japan. Thus CPI will likely dominate next week’s event risk in Japan though we do also have retail sales on Thursday and jobs data plus IP next Friday.

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 83 area."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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