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Sino-Aussie Tensions Prevent NZD/JPY From Retesting Key Resistance Zone

NZDJPY

NZD/JPY ascended in early Asia-Pac hours but failed to attack the Y79.14/21 zone, which capped gains thrice this year. The rate dipped into negative territory, as China's NDRC has halted activities under the China-Australia economic dialogue indefinitely. The rate last sits at Y78.64, 15 pips worse off on the day.

  • The aforementioned area just north of the Y79.00 mark provides the key bullish target, following the rate's consecutive failures to clear that region.
  • Bears look for losses past May 4 low/50-DMA at Y77.71/77.70, which would shift bearish focus to Apr 23 low of Y77.19.

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