The NZD/JPY rates have pushed off from the local minimum and now are gradually recovering. On the chart, we can see an upward trend where the New Zealand dollar has every chance of a rapid strengthening this year, after struggling under the influence of the pandemic in Decemberfor a while .
Despite the aggressive monetary policy of the RBNZ, investors currently have their eyes on the situation with USD. The New Zealand dollar, as a result, largely turned out to be undervalued, given the record low unemployment despite a weak inflow of tourists. Nevertheles, the situation is changing for the better, and justice is coming for NZD.
The Yen has been under pressure for a long time as it’s hopelessly losing ground against the USD. Investors predict that the Bank of Japan will hopelessly lag behind other central banks in tightening monetary policy. This has already happened before, when compared to RBNZ which revised their rate twice last year, and is projected to do it again at its next meeting in February.
In the current situation, despite the absence of macroeconomic reports, we can confidently expect an improvement in the NZD position. Also, the Stochastic oscillator which is now in the oversold zone, adds confidence to our decision to buy NZD in the NZD/JPY currency pair.
