Chart of the Day NZDJPY

<h2><span>Chart of the Day NZDJPY</span></h2>
<p><strong>NZDJPY Running Out Of Steam</strong></p>
<p><span><strong>The broad USD steadied after consecutive days of decline</strong>, with the DXY index back above the 99.00 mark. The greenback saw gains against the EUR complex, with the EUR retreating back towards the 1.1000 handle, and the GBP below 1.2400. CAD underperformed across the board on softer crude (WTI flirting with $20/barrel). The antipodeans, especially the AUD, was more resilient against the USD.  This week, overall risk sentiment has continued to stabilize. </span></p>
<p><span><strong>Looking across the sub-indices, noteworthy generalised relief across most, if not all, asset classes compared to last week</strong>. However, the notion of the worst is yet to come cannot be ruled out just yet, with the macroeconomic trajectory pointing further south.  Although China March official PMIs were relatively supported this morning (the initial hit was taken in the Feb PMIs), the question is how deep other global PMIs will slump. This may become the trigger for another round of risk-off.  </span></p>
<p><span><strong>Notwithstanding month-end flows and short-term liquidity issues, the macro trajectory continues to look very weak,</strong> with more economic contraction to come. The upcoming slate of economic data releases may give the market a chance to re-focus on these issues. </span></p>
<p><span><strong>From a technical &amp; trading perspective the NZD continues to recover</strong>, mostly on the back of the latest Fed interventions, in which the central bank committed to unlimited QE. We’ve also seen Kiwi demand as risk sentiment ticks back up in response to optimism around the coronavirus peaking out. At the same time, there has been some Kiwi selling on Tuesday, from news coronavirus restrictions may remain in place for a long time in New Zealand. ANZ business confidence reads also haven’t helped, after falling to a record low. </span></p>
<p><img class="aligncenter size-full wp-image-40915" src="http://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-31-09.12.43.png" alt="" width="2067" height="1169" srcset="https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-31-09.12.43.png 2067w, https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-31-09.12.43-300×170.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-31-09.12.43-1024×579.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-31-09.12.43-768×434.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-31-09.12.43-1536×869.png 1536w, https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-31-09.12.43-2048×1158.png 2048w" sizes="(max-width: 2067px) 100vw, 2067px" /></p>
<p><span><strong>The NZDJPY looks vulnerable for a correction lower after the recovery</strong> it would appear that in the near term a pullback should develop to address the short term overbought conditions, the corrective thesis would gain support on a break of 64.16, a breach here could see a move to test support back towards 61.50, a decision point, if bids emerge here we could see another leg higher, a failure to find support would open a retest of the lows below 60.00</span></p>
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