NZDJPY – Can New Zealand Dollar Climb?

NZDJPY – Can New Zealand Dollar Climb?

Key Highlights            

  • New Zealand Dollar after trading lower against the Japanese Yen found support near a major bullish trend line formed on the 4-hours chart.
  • There is a major support formed near 77.60, which if holds may push the NZDJPY pair higher.
  • Today, the New Zealand Employment Change was reported by the Statistics New Zealand, which posted a change of 0.9% in the fourth quarter of 2015.
  • Moreover, the New Zealand Unemployment Rate posted a reading of 5.3%, down from 6%.

NZDJPY Technical Analysis

The NZDUSD pair recently dived and tested the 77.60 support area where there were a couple of bullish trend lines waiting to act as a support area. Moreover, the 50% Fib retracement level of the last leg from the 75.99 low to 79.37 high also acted as a barrier for sellers and prevented a downside break.

NZDJPY

The pair is now moving higher and showing a few positive signs. On the upside, the most important resistance is around the 200 simple moving average (H4). Only a break above it could take the pair further higher.

On the downside, we need to keep an eye on the highlighted trend line and support area, as a break below it could call for more losses.

New Zealand Employment Change

Today, New Zealand saw a major economic release, as the Employment Change, which is a measure of the change in the number of employed people in New Zealand was reported by the Statistics New Zealand. The forecast was lined up for a change of 0.8% in the fourth quarter of 2015. However, the outcome was above the forecast, as the Employment Change was 0.9%.

Moreover, the Unemployment Rate was forecasted to increase from 6% to 6.1%, but there was a decline to 5.3%. The report stated that “unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September 2015 quarter”.

Overall, the report was positive, and may help the Kiwi Dollar to gain traction not only against the US Dollar, but also against other major currencies like the Japanese Yen.

 



Mar