NZD/USD & USD/JPY
Posted by FreeWithForex on September 15, 2023
NZD/USD & USD/JPY
- NZD/USD is hovering above the support, but there is no sign of a reversal of the downtrend.
- BOJ's governor aggress to interest rate normalisation.
- USD/JPY Weekly analysis and price forecast.
NZD News
On Wednesday, The NZD generated profits of 0.26% against the USD. This is after the US inflation report which gave rise to mixed feelings in the market. The report indicated a possibility for future rate hikes by the US Federal Reserve. On Thursday, during the Asian trading session, the NZD/USD traded at 0.5917, registering a loss of 0.01%.
NZD/USD is hovering above the support. The pair had a significant decline in August, hitting the 0.5985 price mark, this low has acted as a key support, keeping the pair from falling far below. However, the pair has been unable to move above the resistance level marked by the April high of 0.6375.
NZD/USD Technical Outlook
The broader trend for NZD/USD remains bearish, however, this might change if the pair cross above the 0.6015 high attained in September. If the price breaks above the 0.6015 resistance market, it will open the gateway for the 0.6100 price mark. For the price to reverse, it needs to surpass the July high of 0.6410, and this bullish trend will be confirmed when prices move above the 0.6540 price mark.
USD/JPY Weekly Analysis
After the Governor of the Bank of Japan (BoJ) Kazuo Ueda, stated that the bank would have all the resources they needed to decide on the halt of rate hikes and policy tightening, the Yen had a temporary pullback to the upside. This news got traders indicating a probable bullish trend of the yen. Most traders saw it as an opportunity to regain profits, particularly against the US dollar.
After this report broke out, the Japanese yen originally showed an increased momentum, however, the intensity was temporary. The daily chart showed a memory move upward, and traders speculate that USD/JPY might have a bullish breakout shortly.
USD/JPY Price Analysis
On Thursday, the USD/JPY pair had an upsurge which was catalysed by various factors. The statement made by Ueda suggested the normalization of interest rates had a positive effect on JPY. Meanwhile, this news hurt the USD. However, the 147.00 price level acted as a backbone helping to limit losses. The pair had a downtrend on Thursday which reversed the gains for the previous day down to 147.75. However, during the initial part of the European trading session, the pair tried to get back a few gains from the daily low while trading around the 14.75 price mark. The pair recorded a loss of 0.15% in the early hours of the European trading session.
Assumptions about the Bank of Japan loosening its grip on rate hikes lead to the underperformance of the pair. Especially with the USD's subtle performance. The pair failed to utilize the profits recorded in the past two trading days. However, intraday traders are banking on the 147.00 price mark.
Traders suggest that USD/JPY has a swing high in sight. On Wednesday and Thursday, during the London trading session, the pair had an uptick, with the price barely hitting the 146.50 mark. However, there are still hopes that the price will hit and surpass the 148.00. Especially if the USD gets support from the ignition of inflation issues. Oil prices have been on the rise since July and August with OPEC's supply being cut. On Wednesday the US Energy sector had another surge after the US Energy Information Agency restated oil market tightening.
Price Forecast for USD/JPY
Analysts predict an uptrend in sight, with the new data report for the US CPI proving to be a catalyst. However, traders also believe the Japanese government will step in and stop the pair from moving across 148. If a lower CPI report is published, the pair might decline to 146.50.
Traders are stylishly stalling while looking forward to the bullish trend. The initial resistance mark is at 148.00, and subsequently 148.80. However, if prices stretch either, resistance will be marked at 150.00.
In the case of a price drop, support levels are marked at 145.90 and subsequently 144.55.
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