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12 Mar 2014
NZD/JPY rebounds and jumps on RBNZ rate hike
FXStreet (Córdoba) - The NZD/JPY spiked lower after the release of the RBNZ statement dropping to 86.61, the lowest price in a week and rebounded sharply, rising to 87.58, hitting a fresh daily high.
The central bank of New Zealand rose the key interest rate by 25 basis points to 2.75% as expected pushing the Kiwi to the upside across the board.
NZD/JPY technical outlook
With the recent rally the NZD/JPY erased daily losses and rose back above 87.50, after breaking an intraday resistance at 87.30. Before RBNZ it was moving with a bearish bias but the strong bounce changed the short-term bias to bullish.
To the upside, the key resistance to watch is located barely below 88.00 where last week and Tuesday’s highs lie. To the downside, immediate support could be located at 87.00/05 and below here at 86.60 (March 12 low).
The central bank of New Zealand rose the key interest rate by 25 basis points to 2.75% as expected pushing the Kiwi to the upside across the board.
NZD/JPY technical outlook
With the recent rally the NZD/JPY erased daily losses and rose back above 87.50, after breaking an intraday resistance at 87.30. Before RBNZ it was moving with a bearish bias but the strong bounce changed the short-term bias to bullish.
To the upside, the key resistance to watch is located barely below 88.00 where last week and Tuesday’s highs lie. To the downside, immediate support could be located at 87.00/05 and below here at 86.60 (March 12 low).