NZD/JPY: review and forecast
Dmytro Levchenko, PR Manager – SuperForex
Friday, January 20, 2017
Since November, the rates of the NZD/JPY, are in the frames of the uptrend, but the support line has moved significantly down. The uptrend is losing momentum and we can see formation of a flat trend. During the last month, the rates are very stable, and volatility remains at very low level, although recently, in November the volatility was high, which is usual for all trading instruments with the yen.
Japanese yen (JPY), for the last time, greatly weakened, and this happens due to promised policy of D. Trump and his statements regarding Japanese car manufacturers to increase taxes for them, which could adversely affect exports to Japan, which exports to the U.S. a significant volume of its production. At the same time In Japan's economy has been forming recession with worrying preconditions of decreasing volume exports and investment, which negatively affects the yen. In particular, data obtained from the Ministry of Finance, which indicate the reduction of foreign assets in October and November 1.9% and 1.4%, respectively.
The New Zealand dollar demonstrates an enviable stability and greatly strengthened, amid increasing in construction of residential property, and reducing the trade deficit of New Zealand.
Now the New Zealand dollar costs 82.25 – 82.37 JPY. The best decision here is to open trades on a price correction to the downside. Oscillator MACD confirms it. Upon short term trading, short trades, can be most effective.