NZD/JPY rebound should extend to 78.80 - Westpac

Imre Speizer, Research Analyst at Westpac, suggests that the improvement in global risk sentiment has favoured the NZD over the risk-averse JPY, resulting in a rebound in this cross which should extend to 78.80 during the week ahead.

Key Quotes

“No change from the BoJ last week means we still have ongoing confusion over whether the BoJ is targeting ¥80tn JGB purchases or zero JGB yields. The event calendar is quiet this week.”

“3 months ahead: The BOJ’s defacto tapering of its asset purchases should support the yen. In addition, bouts of Trump disappointment will weigh on risk sentiment and boost the safe-haven yen. We see NZD/JPY remaining below 80 over the next few months.”