NZD/JPY cross likely to move higher towards 78.0 – Westpac

Imre Speizer, Senior Market Strategist at Westpac, suggests that the yen should extend last week’s underperformance and help push the cross higher towards 78.0 during the next week or two with Japan’s industrial sector showing renewed weakness.

Key Quotes

“With the end of the month now all but upon us, the data calendar clearly hots up in Japan. CPI plus the weekly MOF data will be released into a holiday thinned market tomorrow, followed by retail trade Tue, IP on Wed and the Tankan next Fri. So clearly a lot to help shape views into the quarterly BoJ meeting end April. I expect to see soft IP if the Tankan is a good lead indicator. I expect soft retail sales if HH confidence is a good lead indicator.

3 months: A resilient yen combined with further RBNZ easing should combine to push NZD/JPY below 77.

1 year: Our macro-economic based forecast for one-year ahead is 0.77.”

Imre Speizer, Senior Market Strategist at Westpac, suggests that the yen should extend last week’s underperformance and help push the cross higher towards 78.0 during the next week or two with Japan’s industrial sector showing renewed weakness.

(Market News Provided by FXstreet)