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      Inflation Expectations Drive Strength, Uptrend May Resume Toward 97.00

      Eva Chen

      Summary:

      NZDJPY has surged following stronger New Zealand inflation data, reinforcing expectations of rate hikes later this year. Despite weak demand signals, persistent price pressures dominate market pricing. Technically, the pair shows potential to resume its medium-term uptrend, targeting the 97.00 area.

      Buy

      NZDJPY

      EXP
      Trading

      94.047

      Entry Price

      97.020

      TP

      91.400

      SL

      94.167 +0.237 +0.25%

      0

      Point

      Flat

      91.400

      SL

      CLOSING

      94.047

      Entry Price

      97.020

      TP

      Fundamentals

      Recent inflation data has strengthened expectations that the Reserve Bank of New Zealand may tighten policy further later this year. Widening rate differentials have become the primary driver supporting the NZD.
      Although some economic indicators point to softening demand, markets remain focused on inflation persistence and its implications for monetary policy. This dynamic continues to underpin NZD strength.
      Meanwhile, the Japanese yen remains structurally weak due to its accommodative policy stance and yield disadvantage, reinforcing carry trade dynamics and amplifying NZDJPY’s upside.
      Inflation Expectations Drive Strength, Uptrend May Resume Toward 97.00_1

      Technical Analysis

      On the daily chart, NZDJPY remains within a medium-term uptrend. After a recent pullback, price has found support and is showing signs of renewed upside:Price has stabilized at key support without breaking the bullish structure;The pullback appears shallow, consistent with a trend correction;Momentum indicators are turning higher, signaling a return of bullish pressure.
      A confirmed breakout above 94.21 would further validate trend continuation, opening the path toward the 97.00 level, a key historical resistance zone.
      In the short term, aligned fundamentals and technicals support continued upside potential. As long as price holds above 93.80, the bullish structure remains intact.
      In the medium term, unless the rate differential narrative shifts materially, further upside remains likely, with 97.00 as the next major target.

      Trade Recommendation

      Direction: Buy
      Entry: 93.50
      Target: 97.02
      Stop Loss: 91.40
      Valid Until: 2026-05-20 23:55
      Support: 92.91, 91.97, 90.67
      Resistance: 94.18, 95.50, 97.00
      Risk Warnings and Investment Disclaimers
      You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.

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