NZD/JPY slowly falling; will bulls defend the 81 front?

FXstreet.com (Chicago) - NZD/JPY extends bearish channel on Japanese data releases ahead of Tokyo’s opening.

Japanese data

Inflation data in Japan was mostly matched with the national consumer price index (YoY) at 1.1% vs. expected 0.9%. Other results can be seen here. No further data will be released in Asia besides the corporate service price.

NZD/JPY Technical Levels


Technically speaking, the pair is offered at 81.15 and oscillates between the supports aligned at 80.93 (October 8th highs), 80.39 (October 10th lows) ahead of 79.83 (September 30th lows) and the resistances set at 81.96 (October 14th lows), 82.62 (October 17th lows) followed by 83.27 (October 18th highs). The pair evidences primary, secondary and short-term trends converging for bearish outlook with potential break below the 81 key area. On potential double tops formation (September 18th highs along October 22nd highs), the bearish channel continues and downward trendline continues.

Japan's core inflation in line with expectations

Japan's core inflation, both national and in Tokyo came in line with expectations. The data showed: Japan's National Consumer Price Index (YoY) (Sep) came at 1.1% vs 0.9% exp and 0.9% last, National CPI Ex Food, Energy (YoY) (Sep) came at 0% vs 0% exp and -0.1% last, National CPI Ex-Fresh Food (YoY) (Sep) stood at 0.7% vs 0.7% exp and 0.8% last. In Tokyo, Consumer Price Index (YoY) (Oct) stood at 0.6% vs 0.5% exp and 0.5% last, CPI ex Food, Energy (YoY) (Oct) came at 0% vs -0.3% exp and -0.3% last, CPI ex Fresh Food (YoY) (Oct) stood at 0.3% vs 0.3% exp and 0.2% prior.
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Japan Corporate Service Price (YoY) remains at 0.7% in September

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