The New Zealand Dollar/Japanese Yen (NZD/JPY) pair has resumed its upward trajectory, gaining bullish momentum after a period of sideways consolidation. This renewed strength reflects increased investor confidence in the New Zealand dollar amid favorable risk sentiment, while the Japanese yen remains pressured by Japan’s ongoing accommodative monetary policy.
Following a period of range-bound trading, NZD/JPY’s breakout signals strong buyer interest, driven by both technical and fundamental factors. Technical indicators suggest that the pair has found robust support near recent lows, with upward momentum supported by improved global risk appetite. The Reserve Bank of New Zealand’s cautious optimism about the economy also provides a tailwind, bolstering the kiwi’s appeal.
Meanwhile, the Bank of Japan’s commitment to low-interest rates has kept the yen on the defensive, adding fuel to NZD/JPY’s bullish movement. As long as Japan maintains its dovish stance, the yen may struggle to gain ground, leaving room for further upside in the pair. With this renewed momentum, NZD/JPY could target higher resistance levels, especially if global risk sentiment continues to favor growth-oriented currencies.
