NZD/JPY hits eight-year high, Yen falls, Kiwi heads to 90.50

• The NZD/JPY pair is rising to multi-year highs as broader markets flip the risk switch.
• Little data will be released for both currencies early in the week, with market sentiment being the main driver.
• Next up: Japan’s GDP numbers, due out early Wednesday.

The pair NZD/JPY is setting multi-year highs, while market sentiment rises and causes the safe-haven Yen (JPY) to fall against the Kiwi (NZD). With Tuesday’s recovery, the kiwi reached its highest offers against the yen in eight years.

New Zealand data remains limited on the economic calendar this week, although the New Zealand Food Price Index for October was released early on Tuesday and stood at -0.9% compared to the reading. September of -0.4%.

Japan’s Gross Domestic Product (GDP) figures for the third quarter will be published in Wednesday’s session. Quarter-on-quarter GDP is forecast to decline from 1.2% to -0.1%, while the annualized reading is expected to sharpen the decline from 4.8% to -0.6%.

NZD/JPY Technical Outlook

With the Kiwi rising to 90.20, the NZD has rallied 1.5% against the yen in just four hours, and the pair is set for a continuation towards 90.50 if bidders can maintain the momentum.

Intraday technical support lies at the top of the latest swing high near 89.50, with dynamic support from the 200 hourly SMA sitting just south of 89.30.

The previous long-term high for NZD/JPY was established at 90.20 in September, and a second attempt to reach the higher signal is allowing the Kiwi to give up a bit against the Yen.

NZD/USD Daily Chart