NZD/JPY vulnerable to further downside – Westpac

NZD/JPY holds potential to shift lower into the 76.0-77.0 area, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“The event calendar highlights during the week ahead are trade (20 Nov), manufacturing PMI (24th), retail sales (29th), industrial production (30th), and CPI (1 Dec).”

“3 months ahead: The BOJ’s defacto tapering of its asset purchases (JGB purchases are running at JPY 35tr/yr, rather than the 80tr official target) should be yen supportive. In addition, the Japanese economy is seeing a pickup in consumer activity, mitigating any slippage in external demand. We target 76.”