NZD/JPY Price Analysis: Declines to 84.40 on lower RBNZ inflation expectations

NZD/JPY Price Analysis: Finds offers at 200-EMA despite 50 bps rate hike by RBNZ

  • A lower print of RBNZ inflation expectations at 3.07% vs. 3.29% has brought a sell-off.
  • The kiwi bulls are attempting an establishment above 50% Fibo retracement.
  • Momentum oscillators RSI (14) has shifted into the bullish range of 60.00-80.00.

The NZD/JPY pair surpassed the immediate hurdle of 84.62 in the Asian session but has slipped back inside the wood on a surprisingly downward shift in Reserve Bank of New Zealand (RBNZ) inflation expectations. The economic data has released at 3.07%, lower than the prior release of 3.29%. The cross has displayed a bullish open-drive session in which the asset initiates moving upside right from the first tick of the session. On a broader note, the asset has given an upside break of the consolidation formed in an 83.50-84.07 range.

On an hourly scale, the asset crossed the downward-sloping trendline placed from July 20 high at 86.60 but has slipped lower again. Also, the cross if finding cushion around 50% Fibonacci retracement (which is placed from July 20 high at 86.60 to Aug 2 low at 82.14) at 84.32.

The asset has crossed the 50-and 200-period Exponential Moving Averages (EMAs) at 84.00 and 84.11 respectively. It is worth noting that the 200-EMA is auctioning higher than the 50-EMA, which indicates that the buying interest is extremely strong.

Also, the Relative Strength Index (RSI) (14) has shifted into the 60.00-80.00 range, which adds to the upside filters.

A beak above Monday’s high at 84.72 will drive the asset towards 61.8% Fibo at 84.90, followed by July 27 high at 85.65.

On the flip side, the yen bulls could gain strength if the cross drops below 50-EMA at 84.00. An occurrence of the same will drag the asset towards Thursday’s low and 23.65 Fibo at 83.46 and 83.19 respectively.

NZD/JPY hourly chart




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