NZD/JPY struggling to find a foothold, 77.50 still out of reach
- Weak fundamentals, souring market sentiment keeping the Kiwi capped on the low end.
- Risk appetite to be in the driver's seat with little data to drive the NZD.
The NZD/JPY whipped sideways through Wednesday's trading and is trying to find a leg up in the overnight session, testing just above 77.20.
The Kiwi is continuing to struggle against the encroaching Yen, and the NZD's bounce from 75.93 is running into resistance from the 8-day EMA. The macro calendar is a thin showing for the Kiwi this week, though yesterday saw the Global Dairy Trade Price Index came in at -0.6% versus the previous -0.5%, and today had New Zealand Manufacturing Sales for the 4th quarter print at 1.0% year-on-year versus the previous period's 0.3%.
The Kiwi whipped in Wednesday's trading but ultimately ended the day lower as an overall bearish bias in the pair continues to restrict any forceful upwards momentum. Market sentiment is also sending the pair whipping amidst trade war fears and turmoil within Donald Trump's White House following the resignation announcement of his top economic advisor, Gary Cohn.
NZD/JPY Technicals
The pair is trapped in bearish territory below the 200-day SMA, and last week's bounce appears to have come to an early end amid resistance. H4 candles have the NZD/JPY struggling to mark in new highs, and intraday support can be found from 76.80 to 76.55 with resistance priced in at 77.65 and 78.25