NZD/JPY retains the potential to reach the 82 area - Westpac

NZD/JPY found a bottom at 78, the subsequent rebound retaining potential to reach the 82 area during the weeks ahead, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Demand for the safe-haven yen has waned as tensions between the US and North Korea have eased slightly. Much of the focus this week will be on the BoJ meeting Thursday but given it is a non ‘outlook’ meeting expectations are low. August trade data Wednesday is the other major risk event.”

“3 months ahead: The BOJ’s defacto tapering of its asset purchases should be yen supportive. In addition, the Japanese economy is seeing a pickup in consumer activity, mitigating any slippage in external demand. The 82-84 area should cap this cross during the quarter ahead.”