Forex Market: NZD/JPY daily forecast

During yesterday’s trading session NZD/JPY traded within the range of 86.99-87.19 and closed at 87.06.

At 8:02 GMT today NZD/JPY was losing 0.32% for the day to trade at 86.79. The pair touched a daily low at 86.75 at 6:35 GMT, breaching all three key daily support levels.

Fundamental view

New Zealand

At 22:45 GMT Statistics New Zealand is to report on the number of building approvals for new projects in construction during June. In May compared to April building permits, issued by the government, were 4.6% less. Building approvals are considered as a leading fundamental indicator, as they provide information regarding demand in New Zealand’s housing sector. A higher than anticipated number would have a bullish effect on the national currency.

Japan

Japans annualized industrial production probably expanded 5.2% in June, according to the median forecast by experts, following a 1.0% increase in the prior month. In monthly terms, nation’s industrial production index probably dropped 1.2% in June. The index reflects the change in overall inflation-adjusted value of output in sectors such as manufacturing, mining and utilities. It is based on the Current Survey of Production, which encompasses 530 different industrial goods. In case industrial output expanded more than anticipated, this would provide a boost to yens demand. The official report is to be released at 23:50 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 87.08. In case NZD/JPY manages to breach the first resistance level at 87.17, it will probably continue up to test 87.28. In case the second key resistance is broken, the pair will probably attempt to advance to 87.37.

If NZD/JPY manages to breach the first key support at 86.97, it will probably continue to slide and test 86.88. With this second key support broken, the movement to the downside will probably continue to 86.77.

In weekly terms, the central pivot point is at 87.47. The three key resistance levels are as follows: R1 – 88.02, R2 – 88.92., R3 – 89.47. The three key support levels are: S1 – 86.57, S2 – 86.02, S3 – 85.12.