NZD/JPY: Next major upside target is 83.80 - Westpac

In view of Imre Speizer, Research Analyst at Westpac, NZD/JPY’s next major upside target is 83.80 as the yen has been the worst performing major currency over the past few months, partly due to global risk sentiment.

Key Quotes

“Datawise this week, we have machinery orders, May’s balance of payments, eco watchers survey, PPI, and industrial production.”

“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 early signs are promising although more evidence is required before markets fully buy into the emerging Japanese story. We see NZD/JPY gains thus limited to the 84 area.”