NZDJPY was over 2% higher on Monday as safe haven demand dipped with news of a 90% effective coronavirus vaccine. U.S. drugmaker Pfizer announced their latest test results to the market.
Phase 3 of the Pfizer trial involved 43,538 participants and saw 90% of volunteers protected from the virus in less than 30 days. The news has hit safe haven with the U.S. dollar lower and the Yen seeing a sharp drop across the board. Oil was also over 3% higher and back above $40.00 which can also weigh on the Japanese currency due to their high level of oil imports.
Wednesday will see the latest release of monetary policy and interest rates from the Reserve Bank of New Zealand. Traders are expecting the RBNZ to hold rates steady despite their neighbours Austrlalia cutting last week to a record low of 0.1% from the same level. Investors do expect some form of stimulus measures from the Kiwi central bank and this could be in the form a cheap loans program for banks which would be used to support businesses.
The Yen saw gains for the Leading Economic and Coincident indices with both beating expectations. This wasn’t enough to boost the Jaoanese currency and it could be on the back foot into the RBNZ announcement. The bank’s measures will decide whether the Kiwi can continue on a bullish back into the weekend.
NZDJPY Technical Outlook
The NZDJOY had found support at the trend line and at the 69.00 level. The pair was able to move higher and test the moving average and today has seen sharp gains to test the resistance at 71.70. Traders could go long on a close above this level but stop loss levels are hard to define on today’s move. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.