NZD/JPY: Test of 79.30 expected - Westpac

According to Imre Speizer, Research Analyst at Westpac, the month-old rally of NZD/JPY cross should continue if global risk sentiment remains positive, and a test of 79.30 levels is expected.

Key Quotes

“It’s a quiet week ahead in Japan though we do have Q1 GDP on Thursday. Activity data has shown signs of softening of late, so we would not be surprised by a modest downside surprise.”

“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 see NZD/JPY remaining below 80 over the next few months.”