Yesterday during Tokyo trading, the Reserve Bank of New Zealand (RBNZ) lowered its interest rate by 0.25%, making it 3.5%. This was expected, so some traders started buying back the New Zealand dollar. However, the bank also said there might be more rate cuts in the future because of concerns about the global economy slowing down due to trade wars. Because of this, NZD/JPY fell to 79.99 yen.
Later, in the U.S. market, President Trump announced a 90-day pause on new tariffs, which gave the market a boost. Stock prices went up, and risk-taking returned. As a result, NZD/JPY rose sharply to 83.78 yen and ended the day at a high level.
Now that fear in the market has calmed down, if U.S. stock prices stay strong today, traders may continue to adjust their positions, and NZD/JPY could move even higher.
Expected NZD/JPY Price Range: 84.50 to 82.50 yen
Note: This information is not a guarantee of profit. Please make your own decisions when trading.