Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

NZD/JPY Forecast: New Zealand Dollar Finding a Base against the Japanese Yen

NZD/JPY finds support at ¥90 level; interest rate dynamics favor NZD. Watch for a break above Monday's inverted hammer, signaling potential grind higher.

  • During the Tuesday session, we have seen the New Zealand dollar rally a bit during the day, as the ¥90 level continues to be important.
  • Ultimately, the New Zealand dollar is going to continue to offer more in the way of interest then the Japanese yen.

NZD/JPY Forecast Today - 03/04: NZD/JPY Gains Ground (Graph)

Ultimately, this is a situation where you will continue to look at this through the prism of getting paid at the end of every day. The ¥90 level of course is an area that attracts a lot of attention, and therefore it does make a certain amount of sense that people are willing to dip their toe into the market here.

Underneath, we have the 200-Day EMA that is racing toward the ¥90 level, and we have the 50-Day EMA just above the inverted hammer from the Monday session. If we can break above the inverted hammer from the Monday session, then I think this pair continues to grind higher. After all, the Bank of Japan can bar, but they can’t really bite at this point.

Top Forex Brokers

    Getting paid at the end of each session

    Getting paid at the end of each session is the main theme here, and even though there are some concerns out there about the Bank of Japan trying to tighten monetary policy, the reality is that they are essentially at zero, so I suppose that’s something that helps them, but it is going to be paltry compared to what eventually happens if you hold on to this pair long enough. Quite frankly, I don’t think most traders are willing to short this pair and pay interest at the end of every day. At that point time, you are essentially “swimming upstream” and fighting the current.

    In general, I think this is going to have a certain amount of risk appetite built into it, so if we start to see markets rally again, that might be reason enough to think that this pair gain, as the pair is so highly influenced by external factors such as global growth, inflation, and of course animal spirits.

    Ready to trade our daily Forex analysis? We’ve made a list of the best forex trading accounts worth trading with. 

    Christopher Lewis
    About Christopher Lewis

    Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.

    Most Visited Forex Broker Reviews