NZD/JPY remains under pressure as trading back in downtrend New Zealand dollar (NZD) and Japanese yen (JPY) pair has continued the bearish run over the past days, s downward movement. This has depressed the currency pair to levels which were last seen in September 2024, having been a series of lower lows. Given the global markets’ subject to a wide range of events, traders are closely focusing on the pair, as well as the technical indicators affecting its current dynamics.
Why Is the NZD/JPY Going Down?
Their latest performance shows that the NZD/JPY’s biggest driver of weakness is several fold. On the one hand, NZ economic outlook was rather less optimistic due to worse than expected numbers related to the trades and business confidence.
As for the second currency, it also mainly enjoys demand as a safe-haven currency with tensions in geopolitical unrest and fluctuations in the market. Market sentiment has been at the center of this change with investors seeking refuge in the Yen.
The current decline in value of the NZD/JPY pair works in the same direction following the shift towards the JPY from these currencies, as seen below.
NZD/JPY Trading Support and Resistance Levels
When it comes to traders who pay attention to NZD/JPY, such knowledge concerning key levels is crucial. The recent decline has brought the pair to the major support levels that can determine the further trends of the currency pair.
Global risk budget propels NZD/JPY.
Another major driver, in NZD/JPY’s performance is the global risk propensity. As the economical environment is globally unstable such factors as changing the price of oil and geopolitical changes make risk-off a more essential element of the market. Hedge funds are running for cover as the global market default position and the Yen is set to benefit from this flight to safety.
On the other hand, the NZD which is usually considered as the risk currency has not found its feet in this environment. So, as worries about global growth continue to mount, the NZD will continue to struggle to find demand in the current environment.
How US economic data affects NZD/JPY
In addition, the latest economic figure released in the united state has contributed to the oscillations. Due to strict association of monetary policy of the Federal Reserve with the economic conditions, any indicators that point to a deceleration in the growth of US economy will lead to a more accommodative monetary policy. This could reduce global risk sentiment which has supported the Japanese Yen and put more pressure on NZD/JPY.