NZD/JPY: Scope for the rise towards the 84 area - Westpac

Global risk sentiment remains elevated, supporting the NZD and hurting the safe-haven yen and Imre Speizer, research analyst at Westpac, suggests that there is scope for the NZD/JPY cross’s rise to be sustained towards the 84 area.

Key Quotes

“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 84 area.”