Looking over our charts over the past week we noticed the impressive performance of NZD/JPY.
The New Zealand dollar was the best performer in the forex market last week as it gained 3.4% against the yen. The NZD found a bid after stronger-than-expected first quarter inflation and building hawkish expectations for the upcoming RBNZ meeting on April 29.
Economists expect no change in the benchmark lending rate but they may signal growing worries about inflation and higher rates to come.
Meanwhile, the JPY broke down against the CAD last week and is now in danger of breaking through strong resistance in USD/JPY. The longer-term technical picture against the NZD isn’t as bullish, however, so a pullback is possible. We will be keeping a close eye on 68.60, which we see as a pivot.