NZD/JPY rebound could extend to 79.45 - Westpac

NZD/JPY’s recent rebound could extend to 79.45 - the Nov high, suggests Imre Speizer, Research Analyst at Westpac.

Key Quotes

“The data calendar during the week ahead is busy, although holding little interest for JPY markets: Oct BoP, revised Q3 GDP, Nov eco watchers survey, Oct machinery orders and “very” preliminary Dec manufacturing PMI.”

“3 months ahead: The BOJ has defacto tapered its asset purchases (JGB purchases are running at JPY 30tr/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.”