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The Kiwi is on fire today!

With not a lot of potential catalysts ahead, NZD/JPY just might extend its upswing and hit key inflection points on the daily.

Before we talk charts, check out the headlines that dominated late U.S. and most of Asian session trading:

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Upcoming Potential Catalysts on the Economic Calendar:

  • Japan’s preliminary machine tool orders at 6:00 am GMT
  • U.K.’s NIESR GDP estimate on tap
  • U.S. and Canadian markets out on banking holiday

What to Watch: NZD/JPY

NZD/JPY Daily Forex Chart
NZD/JPY Daily Forex Chart

Earlier today, the Reserve Bank of New Zealand (RBNZ) kept its interest rates AND asset purchases unchanged for the month of November.

While Governor Orr and his team are still dovish on the economy, a remark about the resilience of the global economy and less pessimism over New Zealand’s growth and inflation prospects helped soothe concerns of negative interest rates from the RBNZ.

Kiwi’s strength busted NZD/JPY out of consolidation on the 1-hour chart and helped the pair break a key resistance on the daily. In fact, the pair now looks headed for 73.25, which had served as resistance levels in mid and late 2019.

Take note that NZD/JPY has already reached its average volatility on Wednesdays. Headlines from the Eurozone and the U.S. that could weigh on risk sentiment could encourage profit-taking for some Kiwi bulls. The 71.70 previous resistance is a good bet for y’all resistance-turned-support playas.

Feel like getting you some Kiwi instead? If today’s themes (vaccine optimism, RBNZ’s not-so-aggressive stimulus) extend to London and U.S. session trading, then we could see NZD/JPY revisit 73.00 and 73.25 over the next few hours.