The rates are close to the psychological minimum of 71.79 JPY. However, at the moment we can see a price correction, so the deals to BUY seem more reasonable.

The downtrend, which began more than a year ago, continues. The Japanese yen continues to be one of the main safety assets for investors, despite the slowdown in economic growth and an extremely soft monetary policy. Although the demand for safe assets in recent times is not high, the market retains some tension amid a trade conflict between the United States and China, negatively affecting the value of commodity currencies.

The New Zealand dollar seems to be the weakest commodity currency. If the AUD managed to strengthen due to strong macroeconomic statistics and good news from China, the NZD does not have such supporting factors because New Zealand's economy is still not in the best condition. As a result, this week the NZD price reached its lowest level for the last 2.5 years. Perhaps the situation will change next week when the market is expected to release data on the consumer price index in New Zealand for the third quarter of 2018. At the same time, the JPY will also have the opportunity to strengthen with the release of data about the trade balance in September.

NZDJPY, Daily
At the moment, the rates are approaching the psychological level of 71.79 JPY, below which the value of the NZD has not decreased for more than 6 years. At the same time, the New Zealand dollar may lack incentives to strengthen even against the JPY, which is not as strong as it used to be. In this situation, the most effective would be the deals to BUY, which is confirmed by the Stochastic oscillator, given the beginning of the price correction. However, in the long term the deals to Sell seem more reasonable.