NZD/JPY cross is now due a breather - Westpac

Imre Speizer, Research Analyst at Westpac, explains that the cross has reached its 78 target (signalled by a break below 80.30) and is now due a breather.

Key Quotes

“Eventwise, it’s busy week ahead in Japan with the end of the month now approaching. Feb retail trade is out Wednesday and then Friday brings jobs, CPI, IP and housing starts. With the impact of higher crude prices/ weaker ¥ now very clearly waning, the peak in terms of imported energy inflation is almost upon Japan.”

“3 months ahead: The BOJ’s defacto tapering of its asset purchases should support the yen. In addition, bouts of Trump disappointment will weigh on risk sentiment and boost the safe-haven yen. We seen NZD/JPY remaining below 80 over the next few months.”