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The Japanese yen is still on shaky ground, as it continued to slide against its peers.
But will the upcoming New Zealand GDP report spur a pullback for NZD/JPY?
Before moving on, ICYMI, yesterday’s watchlist looked at USD/JPY testing a key resistance level after the BOJ hiked interest rates. Make sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Canada’s headline CPI rose from a flat reading to a 0.3% month-over-month uptick in February, short of the estimated 0.6% increase, with other measures of inflation also falling short
New Zealand GDT auction yielded a steeper 2.8% slump in dairy prices, following the earlier 2.3% decline
People’s Bank of China kept 1-year prime loan rate unchanged at 3.45% and 5-year prime loan rate on hold at 3.95% as expected
New Zealand Westpac consumer sentiment index improved from 88.9 to 93.2 in current quarter
American Petroleum Institute reported draw of 1.519 million barrels in private stockpiles
Price Action News
Overlay of JPY vs. Major Currencies Chart by TradingView
The yen continues to bleed out against its forex peers, even after the Japanese central bank announced an end to negative interest rates. After all, the consensus among analysts is that the BOJ isn’t likely to make any additional tightening moves in the near-term.
For now, central bank intervention fears are on the rise, as USD/JPY breached the 151.00 handle, but these don’t seem to be enough to stem the Japanese currency’s slide for now. The yen chalked up its steepest drop against the Aussie (-0.93%) then the pound (-0.88%).
Upcoming Potential Catalysts on the Economic Calendar:
U.K. headline and core CPI at 7:00 am GMT
ECB President Lagarde’s testimony at 8:45 am GMT
FOMC monetary policy statement at 6:00 pm GMT
FOMC press conference at 6:30 pm GMT
New Zealand GDP at 9:45 pm GMT
Australian employment change at 12:30 am GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! ️
NZD/JPY 15-min Forex Chart by TradingView
This forex pair has been on a steady climb, which even gained traction after the BOJ decision yesterday. The upcoming New Zealand GDP release might bring some volatility and spur a pullback to the Fibonacci retracement levels or the ascending trend line on the short-term time frame.
Do you think NZD/JPY can sustain its uptrend from here? Leave your thoughts in the comments section below!
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