Listen to the market mood for the NZDJPY currency pair in the coming session:
The NZD is strong today after the RBNZ hawkishly adjusted the forecasts for the future rate path now seeing the interest rate at 1.00% in June 2020 and 1.10% in June 2021. This is revising up the previous forecasts of 0.9% through to March 2021.
The JPY is weak at the moment as the expectation for global bank stimulus support equity markets with the Nikkei up nearly 1%, the Hang Seng 1.04% and the Shanghai Comp +0.84%.
Therefore, expect NZDJPY buyers at pullbacks.
Risks to this outlook
Any news on the coronavirus spreading will find JPY buyers and invalidate this outlook.