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.

 

Technicals	CMP -90.27	Trend
1- Hour chart	Value
55 EMA	89.45	CMP>value	Bullish
200- EMA	89.90	CMP >value	Bullish
365- EMA	90.76	CMP<value	Bearish
EMA	91.98	CMP<Value	Bearish

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

Momentum indicator	Inference	Value
CCI(50)	Bearish	303
ADX	Bullish	Strength increased from 14 to 19.88

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