The NZD/JPY rates are in the frames of a rapid downward trend. However, the New Zealand dollar stopped falling and consolidated in the range 76.0-76.76 JPY. Yesterday we received important statistics related with the two currencies. Economic statistics from New Zealand positively impacted the NZD. The consumer price index grew by 2.2% year on year, exceeding forecasts. It is also the highest annual growth rate since 2011. For the first quarter of the year the index grew by 1%, slightly exceeding the forecasted 0.8%. At the moment that is enough to stabilize the exchange rate of the NZD. In a week the market expects new data about the trade balance of New Zealand that may affect the value of the NZD.
On the other hand, the trade balance of Japan is already known and taking into account seasonal fluctuations amounted to only 0.17 T, although it was expected that this indicator will be thrice more at 0.61. This has disappointed investors, although the overall the economy of Japan is at a good level. The volume of exports and imports grew and exceeded the forecasted values. This also became the main growth factor for the Japanese economy in the future. Investors expect growth by 1% in 2017.
At this moment the MACD, Stochastics, and RSI oscillators are neutral. It should be noted that since April 10, we have seen the formation of a flat trend, though at the moment it is early to say whether the downtrend is ending. There are not enough preconditions for that. You should pay attention to the points of entry 76.75 and 76.2 JPY. At the moment in medium-term trading it is recommended to open short deals on the trend.
