The technical situation on the NZD/JPY pair looks very interesting, especially if we look at higher intervals, e.g. monthly. The chart shows how precisely for 15 years the zone slightly below the round level of 70.00 has been respected. In January, a pin bar with a very long lower shadow will probably form. It seems that in such a technical environment, it suggests at least a temporary increase, e.g. to the line connecting the last peaks, i.e. around 77.00. Yesterday there were good data from New Zealand. The CPI inflation reading was higher than expected, both in annual and quarterly terms. The risk of interest rate cuts this year is falling.
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On the other hand, the meeting of the Bank of Japan did not change the parameters of monetary policy, although the inflation projections for the next three years have been lowered. Increased expectations as to GDP are positive, but they do not apply to this year. Therefore, it seems that the NZD/JPY has an opportunity to grow, at least until new reports from the US-Chinese negotiations.
