NZD/JPY: trading opportunity
Societe Generale recommends buying NZD/JPY at 79.35 targeting 81.85 and with stop on a close below 77.90.
The specialists point out that yen will likely be weakened by the results of Japanese elections, while the risk of a short squeeze in NZD is increasing. The risks to this scenario include weaker macroeconomic data and the failure of Abe’s party to get enough votes at the elections.
The pair will face a band of resistance at 80.20/50. Support is at 78.60.
Chart. Daily NZD/JPY