NZD/JPY remains range bound above 81.00

FXstreet.com (Barcelona) - The Kiwi/Yen finished the session down 56 pips at 81.37, again holding support located just above the 81.00 level which has been the lower end of the recent trading over over the past 6 days. Some analysts were pointing towards comments from RBNZ Wheeler as a catalyst for weakness in the Kiwi.


According to Marcin Budkiewicz, Rates and FX Strategist at TD Securities, “RBNZ Governor Wheeler’s delivered his highly-anticipated speech this morning, on “Forces affecting the NZ economy and policy challenges around the exchange rate and housing market”. The headlines focussed on the ‘significantly overvalued’ NZD, and the ‘threat’ of further currency intervention as the NZD is ‘not a one-way bet’, again concluding that the RBNZ stands ready to act.”

From a technical perspective, the pair continues to be under bearish influence from a large pennant pattern which broke to the downside in mid-May and has longer term measured move targets near 77.00. Short term moving averages remain in bearish set up on the daily chart, while RSI (14) remains neutral and is sitting above critical support at 40. Initial support sits at 81.00 (this will be key as a break below could open the doors towards 80.05, the 100dma). First resistance sits at 82.32 (the 9dma), followed by 83.17 (the 20dma).