NZD/JPY: Downside potential retained - Westpac

NZD/JPY retains downside potential, with 78.50 levels being the next major target, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Tensions on the Korean peninsula are boosting demand for safe-haven currencies such as the JPY (despite the geographical proximity to the tensions).”

“The data calendar this week is thin, with services and composite PMI on Tuesday and revised Q2 GDP and balance of payments Friday.”

“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 82 area should cap this cross during the quarter ahead.”