New Zealand Dollar vs Japanese Yen
NZD JPY is the most active Asian cross rate with regard to USD. Besides the active influence of US dollar, it strongly depends on the exchange rate of yen, prices for energy resources and agricultural products. The economy of New Zealand is focused on exports and is characterized by almost complete absence of state subsidies for the development of basic industries. Its business competes independently in the foreign market. The main foreign partners are the USA, Australia, Japan, China. A half of all foreign investments to the country is made of American and Japanese capital. New Zealand is belongs to the countries with high level of execution of financial obligations (AA) by S&P rating.
The following factors have fundamental influence on the forex NZD JPY forecasts: the main economic indicators of New Zealand, Japan, China, and the USA (discount rate, GDP, inflation, unemployment level, CPI, PMI, etc.); Statements made by officials and financial structures of those countries; Statements made by RBNZ, as well as by the Bank of Japan, Japanese yen's currency interventions; The dynamics of prices for energy resources and raw materials that influence the economy of New Zealand, as well the dynamics of the Asian stock indexes (Hang Seng, KOSPI, Nikkei 225, SET50, SSE Composite, TOPIX).
As most of commodity currencies, the pair New Zealand dollar Japanese yen produces an active response to fundamental events, commodity speculations and weather conditions, as well as to economic indicators of its main partners. This asset doesn't take technical analysis well, there are almost no long-term trends, the assessment of the current range and penetration trading are the most realistic activities. New Zealand dollar Japanese yen rate often produces significant price jumps because of yen that is actively weakened by the Bank of Japan, and because of speculations on the energy resources market. New Zealand dollar Japanese yen Forex pair is not recommended for beginners.
The New Zealand dollar Japanese yen pair has high liquidity during the Asian session; however, at the same time, it is behind AUD USD, AUD JPY, and USD JPY. The main volume: exchange operations conducted by RBNZ and the Bank of Japan, commodity and raw materials and large option contracts.