NZD/JPY: Potential to break below 78.50 - Westpac

NZD/JPY retains potential to break below 78.50 support during the week ahead, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Tensions on the Korean peninsula have not subsided, hurting the risky NZD and boosting the safe-haven JPY. The data calendar this week includes the usual run of month end data including retail sales Wednesday and IP on Thursday. The strong recovery in exports adds to the positive data picture seen so far this quarter, so IP will be closely watched.”

“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 84 area should cap this cross during the quarter ahead.”