FxWirePro: NZD/JPY Recovers Most of Previous Week's Losses, Stays capped Below Daily Cloud
- NZD/JPY extends gains on the day, erasing most of Thursday's losses. Renewed risk-on wave in the markets on positive data supporting the higher-yielding currencies.
- The pair is on track to close the week higher paring most of last week's losses. We see scope for further upside.
- Bank of Japan will hold its two day monetary policy meeting on 27-28 April where it is expected to decide policy rate and update forecasts inflation and growth figures.
- Reuters poll shows 8 out of 16 analysts feel that the BOJ will take easing steps at 27-28 April meeting.
- JGBs gained on Friday amid weak industrial production and expectation of further policy easing from BoJ.
- Technicals also support upside in the pair. Stochs and RSI are biased higher, 5-DMA shows a bullish crossover on 10-DMA and MACD line is on the verge of a bullish crossover on signal line.
- Pair is struggling below daily cloud currently spanning 76.04 to 78.03. Breaks above cloud base will see further gains.
The material has been provided by InstaForex Company - www.instaforex.com