NZDJPY Surges Past 90 Amidst BOJ Rate Hike Uncertainty

NZDJPY gained above the 90 level after a rate hike by the BOJ. The downtrend seems to be leaning toward favorability if the 90.50 resistance holds.

Citing inflation worries driven by rising wages and expenses, the Bank of Japan raised its policy rate by 25 basis points to 1.25%, the highest since 1995. Though anticipated, the market responded with yen depreciation, probably because the future guidance than expected. This action raises demand for Japanese government bonds and could lower carry trade appeal. If markets price in more rapid tightening, future volatility in worldwide risk assets may increase; Governor Ueda's forthcoming press conference is crucial to evaluate the next moves.

 Near-term resistance - 90.50/90.97/91.80/92/92.30/93.20. Near-term support- 89/88

 It is good to buy on dips around 89.92- 95, with an SL around 89, for a TP of 92.