NZD/JPY: Potential to retest the 79 area - Westpac

In view of Imre Speizer, Research Analyst at Westpac, NZD/JPY has potential to retest the 79 area.

Key Quotes

“The yen performed well during the past week, thanks to its status as a “safe-haven” currency during tensions on the Korean peninsula (as debatable as that is given Japan’s geographical proximity).”

“It’s a reasonably busy week ahead in Japan with GDP on Monday, final June IP on Wednesday and trade data for July on Thursday. GDP will be the key focus, with partials certainly highlighting a pickup in growth in Q2.”

“3 months ahead: The BOJ’s defacto tapering of its asset purchases should be yen supportive. In addition, the Japanese economy is seeing a pickup in consumer activity, mitigating any slippage in external demand. The 84 area should cap this cross during the quarter ahead.”