- NZD/JPY is taking bids around 76.40 on early Monday.
- Positives for the US-China trade deal counter BoJ’s support for monetary policy easing to propel the pair.
- An upside clearance of 76.60 can print 77.00 whereas 75.80 and 75.4 can offer immediate supports during the pullback.
The NZD/JPY pair trades near 76.40 during early Asian sessions on Monday. The pair fell short of breaking February high around 76.60 on Friday. Though, speculations of a successful trade deal between the US and China, together with likely extended loose monetary policy by the Bank of Japan (BoJ), continue supporting the bulls to aim for 76.60 breaks.
The BoJ Governor Haruhiko Kuroda hasn’t given up on his likeliness for monetary policy easing. During his last week’s parliament appearances, he dropped hints of more easing to come if required. The news boosted the JPY sellers’ morale at a time when the US Dollar (USD) is a market favorite.
On the other hand, optimism surrounding a trade accord between the world’s two largest economies seems good news for antipodeans after nearly a year of negativity due to the US-China trade spat. It should also be noted that China is New Zealand’s second largest consumer after Australia.
Traders might closely observe the upcoming appearance of the BoJ’s Kuroda in order to determine near-term future moves of the pair in addition to following updates on the US-China trade deal.
The BoJ Governor Kuroda is scheduled to appear in the Japanese parliament at 00:00 GMT on Monday. However, his agenda and actual timing for speech can be less sure.
NZD/JPY Technical Analysis
NZD/JPY needs to surpass 76.60 upside barrier in order to challenge 77.00 and mid-December high near 77.50, which if broken can propel the pair further up toward 78.00 resistance levels.
On the downside, an upward sloping trend-line joining February lows, around 75.80, seems immediate support for the pair during its pullback, a break of which can reprint 75.40 and 75.00 on the chart.
Share
