NZD
New Zealand economy is slowing gaining pace in GDP growth rate from 0.4 % in Q4 of year 2016 to 0.8 % in third quarter of this year. Services has been the best performing sector of the New Zealand economy contributing the most to the otherwise sluggish growth rate of GDP. GDP is expected to grow faster moving forward as and when construction and mining sector also starts contributing positively to the GDP growth.

JPY
Japanese economy is continuing moderate pace of recovery. Government is also putting large investments for the year 2020 Tokyo Olympic Games which is likely to have a positive spillover effect on the larger Japanese economy. Though the inflation is not expected to rise substantially any time soon as wage growth is tepid.

Weekly Charts
Bollinger Bands: Bollinger bands are in contraction phase while NZD/JPY is crossing above the middle band. It is indicative of consolidation with a upward bias.
RSI: RSI is also entering into the bullish territory of above 50 levels after a long time in bearish mode.
Taken together Bollinger Bands and RSI are in bullish mode for NZD/JPY on weekly charts.



Monthly charts
Bollinger Bands: Bollinger bands are in contraction phase while NZD/JPY is crossing above the middle band.
RSI: RSI is still below 50 which is bearish for a while but it's approaching the 50 levels really quick.
Taken together Bollinger bands and RSI are in consolidation phase with NZD/JPY showing a slight upward bias.

Translate to English Show original