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24 Feb 2015
NZD/JPY testing lows at 89.00
FXStreet (Mumbai) - NZD/JPY fell in the Asian session, reversing gains seen in the previous session, largely on the back of a weak New Zealand dollar across the board after RBNZ lowered inflation expectations in Q4 2014, supporting the case for an accommodative monetary stance from the Kiwi central bank.
NZD/JPY trades below 10-DMA
Currently, the NZD/JPY cross trades lower by -0.35% at 89.10 levels, hovering close to day’s low previously posted at 89 levels. NZD/JPY edged lower as the New Zealand dollar lost ground versus the Japanese yen after inflation expectations survey by the RBNZ revealed that New Zealand businesses think the annual change in the CPI will be 1.11% in the year ahead, while the 2-year ahead change will be 1.80%. That's down from 1.59% and 2.09% respectively. The lower inflation outlook added to the speculation of a likely rate cut by the RBNZ this year.
However, the losses in the cross were restricted on a weaker yen versus the US dollar as the Fed Chair Yellen testifies in the day ahead. Moreover, the cross is fast approaching 200-DMA located at 88.76 and may test it, should it break below the 89 barrier.
NZD/JPY Levels to consider
To the upside, the next resistance is located at 89.44 (5-DMA) levels and above which it could extend gains to at 89.67 (50-DMA) levels. To the downside immediate support might be located at 88.76 (200-DMA) levels below that at 88.35 (20-DMA) levels.
NZD/JPY trades below 10-DMA
Currently, the NZD/JPY cross trades lower by -0.35% at 89.10 levels, hovering close to day’s low previously posted at 89 levels. NZD/JPY edged lower as the New Zealand dollar lost ground versus the Japanese yen after inflation expectations survey by the RBNZ revealed that New Zealand businesses think the annual change in the CPI will be 1.11% in the year ahead, while the 2-year ahead change will be 1.80%. That's down from 1.59% and 2.09% respectively. The lower inflation outlook added to the speculation of a likely rate cut by the RBNZ this year.
However, the losses in the cross were restricted on a weaker yen versus the US dollar as the Fed Chair Yellen testifies in the day ahead. Moreover, the cross is fast approaching 200-DMA located at 88.76 and may test it, should it break below the 89 barrier.
NZD/JPY Levels to consider
To the upside, the next resistance is located at 89.44 (5-DMA) levels and above which it could extend gains to at 89.67 (50-DMA) levels. To the downside immediate support might be located at 88.76 (200-DMA) levels below that at 88.35 (20-DMA) levels.