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Short-Term Forex Technical Outlook: NZD/JPY.

The NZD/JPY pulled back from the trend highs to test 60.12, the 5/29 low, for short-term support, and the high-yielding currency may continue to push higher over the near-term as investors speculate the Reserve Bank of New Zealand to put a floor on the interest rate. Currency Pair: NZD/JPY Chart: 60 Min Charts Short-Term Bias: Flat Analysis The NZD/JPY pulled back from the trend highs to test 60.12, the 5/29 low, for short-term support, and the high-yielding currency may continue to push higher over the near-term as investors speculate the Reserve Bank of New Zealand to put a floor on the interest rate. After reaching a high of 74.59 on 9/8, the NZD/JPY slipped to a low of 44.23 in February as investors curbed their appetite for risk, but the rebound in market sentiment throughout the first half of the year has helped the pair to retrace the sell-off from October. However, the kiwi-yen looks to be finding resistance at 62.90-63.00 (61.8% Fib), and the lack of momentum to retrace the dip from September could lead the pair lower over the remainder of the week to test 59.30-40 (50.0% Fib) for support. At the same time, the RBNZ is widely expected to hold the benchmark interest rate steady at the record-low of 2.50% later today, and long-term expectations for higher interest rates may continue to drive the New Zealand dollar higher over the near-term. As a result, the NZD/JPY may make another attempt to push above the 61.8% Fib over the next few hours of trading but nevertheless, as the RSI approaches overbought territory, gains are likely to be capped, and we may see the pair hold along the 120SMA ahead of the central bank's interest rate decision at 21:00 GMT. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs. To contact the author of this article, please email: dsong@fxcm.com Related Articles: COT: Speculators Trim Euro Longs Carry Interest is Rising But a Lack of Risk Doesn't Translate Into Strong Fundamentals NZD/USD: Trading the Reserve Bank of New Zealand Interest Rate Decision Forex Technical and Fundamental Forecasts for June

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Publication:Mena Report
Date:Jun 10, 2009
Words:394
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