NZD/JPY continues to tumble into the week's end
- Kiwi getting crushed under the Yen's safe haven wheels.
- Trade war fears, Japanese government scandal has left market sentiment critically risk averse.
The NZD/JPY continues to trade lower in the Asia session, currently testing into 76.70 ahead of the European markets. Risk aversion coupled with a lack of data is driving the risk-based currencies like the NZD lower against the safe-haven Yen as we round out the trading week.
Trade war fears continue to intensify throughout the broader markets as Trump's favourite new plaything, tariffs and duties on foreign goods, get daily airtime. Following the steel and aluminum tariffs announced last week expected to take effect in a little over a week, Trump has threatened another &60B in tariffs aimed specifically at China. Markets are withdrawing as they wait to see how China will react, but the short lifespan of Trump's most trusted advisors is stealing some of the thunder, as Trump continues to lose or fire key officials within his own hand-selected White House staff.
No meaningful data remains on the docket for either currency for the week, and the pair will be at the mercy of overall market sentiment to finish the Friday session.
NZD/JPY Technicals
Daily candles are steeply off the last high of 78.62, and the lower high has priced in a bearish reading for the pair and the last low point of 75.92 will have to hold as support if a bullish outlook is going to develop. The H4 charts have support nearby at February's last swing low of 76.60, and a return up the charts would face this week's last swing low of 77.55.