4 Feb 2014
NZD/JPY taking a breather
FXStreet (Guatemala) - NZD/JPY is flat and taking a breather from a day of supply that took the pair from the areas of 82.80 down to the 81.50’s.
Markets have been in risk off mode, which means this is a pair to watch being as the markets look to shun and offset the carry while China is causing a concern across markets. The pair is extending the downside overall from the 84 handle, threatening the September uptrend from below 76, albeit someway out of reach. Strong support would be sighted around the 80 handle. But a break below 83.70 was significant. Meanwhile, Imre Speizer at Westpac noted that despite a probable RBNZ interest rates hike on 13 March, markets have picked on the NZD to express negative sentiment towards risky assets globally. “That may be because the NZD has one of the highest betas (sensitivity to risky assets) among the world’s major currencies. In addition, the NZD was a top performer in 2013, making it an attractive mean-reversion trade. If 0.8085 gives way, we’ll target 0.7900 during the weeks ahead” Meanwhile, the EMA’s are still in a bearish bias with RSI offering some room more to the downside still reading above 30.
Markets have been in risk off mode, which means this is a pair to watch being as the markets look to shun and offset the carry while China is causing a concern across markets. The pair is extending the downside overall from the 84 handle, threatening the September uptrend from below 76, albeit someway out of reach. Strong support would be sighted around the 80 handle. But a break below 83.70 was significant. Meanwhile, Imre Speizer at Westpac noted that despite a probable RBNZ interest rates hike on 13 March, markets have picked on the NZD to express negative sentiment towards risky assets globally. “That may be because the NZD has one of the highest betas (sensitivity to risky assets) among the world’s major currencies. In addition, the NZD was a top performer in 2013, making it an attractive mean-reversion trade. If 0.8085 gives way, we’ll target 0.7900 during the weeks ahead” Meanwhile, the EMA’s are still in a bearish bias with RSI offering some room more to the downside still reading above 30.