NZDJPY – New Zealand Dollar in Clear Uptrend versus Japanese Yen
Aayush Jindal
NZDJPY – New Zealand Dollar in Clear Uptrend versus Japanese Yen
Key Highlights
The New Zealand dollar is following a nice bullish trend versus the Japanese yen, and currently trading above the 77.00 support.
There is a monster bullish trend line formed on the 4-hours chart of NZDJPY, which may continue to act as a support.
In New Zealand, the Retail Sales figure is lined up later this week by the Statistics New Zealand, which is forecasted to increase by 0.8% in Q3 2016.
In Australia today, the Wage Price Index released by the Australian Bureau of Statistics posted a rise of 0.4% in Q3 2016, compared with the forecast of 0.5%.
NZDJPY Technical Analysis
The New Zealand dollar enjoyed a decent upside move during the past few days and traded above the 76.00-20 resistance area against the Japanese yen. The NZDJPY pair is currently in a bullish trend, and positioned for more gains.As can be seen from the 4-hours chart of NZDJPY, there is a monster bullish trend line acting as a support. There was a break once, but it can considered as a false move.On the downside, an initial support is around the 38.2% Fib retracement level of the last wave from the 75.76 low to 77.57 high. On the upside, a break above the recent high of 77.57 is needed for an upside move towards 77.50. Overall, it looks like as long as the pair is above the 4-hours chart bullish trend line, it may continue to trade higher.
Australian Wage Price Index
Earlier today, the Australian Wage Price Index, which is an indicator of labor cost inflation and of the tightness of labor markets was released by the Australian Bureau of Statistics.The market was aligned for an increase of 0.5% in the index in Q3 2016, compared with the previous quarter. The result was a bit lower, as the Australian Wage Price Index posted a rise of 0.4%.In terms of the yearly change, the Australian Wage Price Index was forecasted to increase by 2% in Q3 2016, compared with the same quarter a year ago. However, it came in at 1.9%. The report added that the “Private sector rose 0.4% and the Public sector rose 0.6%, seasonally adjusted. The rises in indexes at the industry level (in original terms) ranged from 0.1% for Mining to 1.7% for Accommodation and food services”.
As can be seen from the 4-hours chart of NZDJPY, there is a monster bullish trend line acting as a support. There was a break once, but it can considered as a false move.On the downside, an initial support is around the 38.2% Fib retracement level of the last wave from the 75.76 low to 77.57 high. On the upside, a break above the recent high of 77.57 is needed for an upside move towards 77.50. Overall, it looks like as long as the pair is above the 4-hours chart bullish trend line, it may continue to trade higher.
In terms of the yearly change, the Australian Wage Price Index was forecasted to increase by 2% in Q3 2016, compared with the same quarter a year ago. However, it came in at 1.9%. The report added that the “Private sector rose 0.4% and the Public sector rose 0.6%, seasonally adjusted. The rises in indexes at the industry level (in original terms) ranged from 0.1% for Mining to 1.7% for Accommodation and food services”.