NZDJPY Lower
Updated
I like trying NZDJPY lower here.
Technicals provide a good entry/stop level with a nice resistance level that we have bounced off a number of times this year.
Narrative wise i think we should be lower, commodities have moved a touch lower and yields seem to have peaked. We also have the RBNZ meeting tonight which i think is what is holding NZD strength up currently. I think i would lean to the dovish side for the meeting as the RBNZ was one of the first central banks to hike and have hiked the most so i am expecting them to turn dovish soon.
Inflation expectations have been a good indicator of direction in the pair and it is currently suggesting lower to me.
Sentiment and positioning have been extreme recently and i think this is still the case roughly.
Not trading/investment advise, feedback welcome!
Technicals provide a good entry/stop level with a nice resistance level that we have bounced off a number of times this year.
Narrative wise i think we should be lower, commodities have moved a touch lower and yields seem to have peaked. We also have the RBNZ meeting tonight which i think is what is holding NZD strength up currently. I think i would lean to the dovish side for the meeting as the RBNZ was one of the first central banks to hike and have hiked the most so i am expecting them to turn dovish soon.
Inflation expectations have been a good indicator of direction in the pair and it is currently suggesting lower to me.
Sentiment and positioning have been extreme recently and i think this is still the case roughly.
Not trading/investment advise, feedback welcome!
Comment
sold another at 87.29, just short term to see if we move lowerComment
sold again at 87.7Comment
out at 86.466, china reopen narrative could mean further NZD gainsDisclaimer
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