NZD/JPY headed lower? - Westpac

NZD/JPY broke lower last week, and appears destined for the bottom of a multi-month contracting range at around 78.75, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“The NZD has been hurt by election uncertainty, while the yen has been boosted by North Korean tension. The event calendar highlights this week are Aug machinery orders, BoP, and tertiary industry index.”

“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.”