NZD/JPY rebound probably minor - Westpac

Imre Speizer, Research Analyst at Westpac explains that NZD/JPY is revisiting its breakdown level, around 79.0 and as long as it remains below this level, he are happy to retain a bearish medium term bias.

Key Quotes

“The event calendar is pretty quiet week ahead, with just earnings data Tuesday and balance of payments data on Thursday.”

“3 months ahead: The BOJ’s defacto tapering of its asset purchases (JGB purchases are running at JPY 35tr/yr, rather than the 80tr official target) should be yen supportive. In addition, the Japanese economy is seeing a pickup in consumer activity, mitigating any slippage in external demand. We target 76.”