NZDJPY – New Zealand Dollar Poised for Further Gains versus Yen
Aayush Jindal
Key Highlights
The New Zealand Dollar remained elevated against the Japanese yen with support at 82.00.
There are two bullish trend lines positioned on the downside for NZDJPY to act as a support at 82.20 and 81.80.
Today, the Consumer Price Index released by the Statistics New Zealand posted an increase of 0.4% in Q4 2016.
In terms of the yearly change, there was a rise of 1.3% in Q4 2016, compared with the +1.2% forecast.
NZDJPY Technical Analysis
The New Zealand dollar climbed above a major resistance at 81.80-82.00 against the Japanese yen. The NZDJPY pair is now in an uptrend and remains supported near the same levels.The pair recently traded close to the 82.80 level where it found sellers and moved down. However, the downside move remains supported, as there is a major barrier near 82.00-81.80. The same levels were resistances earlier, and may now act as supports.Moreover, the same area has a bullish trend line on the 4-hours chart. So, we can say if the pair dips from the current levels, then it may find support near 82.00 or 81.80.On the upside, a break above 82.80 is needed for a move towards 83.00 in the near term. The H4 RSI is well above the 50 level for NZDJPY, which is a positive sign.
New Zealand Consumer Price Index
Today, New Zealand saw the release of the Consumer Price Index by the Statistics New Zealand. The market was positioned for an increase of 0.3% in the retail prices of a representative shopping basket of goods and services in Q4 2016, compared with the previous quarter. However, the result was better, as the CPI came in at +0.4 in Q4.The yearly change was forecasted to rise by 1.2% in Q4 2016, compared with the same quarter a year ago. However, the result was positive, as there was a rise of 1.3%. The report added that “Prices for tradable goods and services were 0.1 percent lower in the year to December 2016. Despite higher quarterly prices, petrol and international airfares were cheaper than a year ago.”Overall, the result was positive, and may help the NZDJPY pair in trading towards the 83.00 level.
The pair recently traded close to the 82.80 level where it found sellers and moved down. However, the downside move remains supported, as there is a major barrier near 82.00-81.80. The same levels were resistances earlier, and may now act as supports.Moreover, the same area has a bullish trend line on the 4-hours chart. So, we can say if the pair dips from the current levels, then it may find support near 82.00 or 81.80.On the upside, a break above 82.80 is needed for a move towards 83.00 in the near term. The H4 RSI is well above the 50 level for NZDJPY, which is a positive sign.
The yearly change was forecasted to rise by 1.2% in Q4 2016, compared with the same quarter a year ago. However, the result was positive, as there was a rise of 1.3%. The report added that “Prices for tradable goods and services were 0.1 percent lower in the year to December 2016. Despite higher quarterly prices, petrol and international airfares were cheaper than a year ago.”Overall, the result was positive, and may help the NZDJPY pair in trading towards the 83.00 level.