- The NZD/JPY is climbing into multi-year highs as broader markets flip on the risk switch.
- Light data on the calendar for both currencies in the early week sees market sentiment the primary driver.
- Up Next: Japan GDP figures due early Wednesday.
The NZD/JPY is chalking in multi-year highs as market sentiment surges and sends the safe haven Yen (JPY lower against the Kiwi (NZD). Tuesday’s rally sees the Kiwi reaching its highest bids against the Yen in eight years.
New Zealand data remains limited on the economic calendar this week, though early Tuesday did see the NZ Food Price Index for October print at -0.9% compared to September’s reading of -0.4%.
Wednesday’s early market session will be seeing Japan Gross Domestic Product (GDP) figures for the 3rd quarter. Quarter-on-quarter GDP is forecast to decline from 1.2% to -0.1%, while the annualized reading is expected to steepen the decline from 4.8% to -0.6%.
NZD/JPY Technical Outlook
With the Kiwi’s climb into 90.20, the NZD has rallied 1.5% against the Yen in a mere four hours, and the pair is set for a continued run towards 90.50 if bidders can keep the momentum going.
Intraday technical support sits at the top of the last swing high near 89.50, with dynamic support from the 200-hour Simple Moving Average (SMA) sitting just south of 89.30.
The NZD/JPY’s previous long-term high was set at 90.20 back in September, and a second run at the high water mark is allowing the Kiwi to find some give in the Yen.
NZD/USD Daily Chart