NZD/JPY Heading Towards Target

The New Zealand political coalition impacted New Zealand dollar attractiveness across the board on Thursday.

While the Japanese Yen remained one of the most viable currencies, the decision of Haruhiko Kuroda to maintain the current monetary stance to stimulate growth through exports partially hurt its attractiveness but not against emerging currencies like the Kiwi.

As previously projected, a sustained break below the ascending channel, as shown above, would reinforce sellers’ interest for 78.83 targets.

Again, if the new coalition party failed to present a holistic economic plan in coming days amid rising food prices and weak wage growth. NZD/JPY may head towards 2017 low of 75.61 support level. Therefore, our forex weekly outlook Oct 16-20 holds.

The Kiwi is a commodity-dependent currency and dipped on Tuesday after global milk prices plunged.