Editorial & Advertiser disclosure

Global Banking & Finance Review® is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Home > Trading > NZD/JPY LONG-TERM UPTREND ON RBNZ RATE HIKE BIAS

NZD/JPY LONG-TERM UPTREND ON RBNZ RATE HIKE BIAS

Published by Gbaf News

Posted on April 25, 2014

3 min read

Last updated: January 22, 2026

Graph illustrating the NZD/JPY long-term uptrend following RBNZ rate hike - Global Banking & Finance Review — This image shows a graph depicting the NZD/JPY currency pair's long-term uptrend following the Reserve Bank of New Zealand's recent interest rate hike. It highlights the bullish momentum and key support levels, providing insights into trading opportunities.

The Reserve Bank of New Zealand (RBNZ) decided to increase interest rates by 0.25% in this month’s monetary policy statement. Governor Stephen Poloz mentioned that future policy changes will depend on economic data but he emphasized that inflationary pressures are likely to stay strong for the next couple of years. This suggests that the New Zealand central bank will be maintaining its hawkish bias and would be willing to hike rates again in order to keep inflation contained.

NZD/JPY staged a strong rally right after the announcement as bulls were pleased to hear that the RBNZ is staying upbeat on the economy. The rate hike was expected by many but the inflation outlook took some by surprise. The 4-hour chart shows that the pair has successfully bounced off support around the 87.50 minor psychological level and may be on its way to test the previous highs near 90.00.

NZD/JPY LONG-TERM UPTREND ON RBNZ RATE HIKE BIAS

NZD/JPY LONG-TERM UPTREND ON RBNZ RATE HIKE BIAS

On the other hand, Japan is facing a downbeat economic outlook as the recently implemented sales tax hike threatens to weigh on consumer spending and overall economic growth. Take note though that a Japanese news source mentioned that the government is considering loosening lending restrictions in the country in order to give small businesses easier access to funding, possibly an effort to make up for the slack to be caused by the sales tax increase.

As expected, the RBNZ also tried to talk down the New Zealand dollar, citing that the overvalued currency might wind up hurting exports and inflation. However, this didn’t trigger much of a reaction since this statement has been repeated over and over since the past few rate statements.

In the unlikely event of a downside break from the 87.50 area of interest, which could be spurred by a significant run in risk aversion, NZD/JPY could make its way back down to the next visible support zone around 86.00. A break below this level could push it down to 84.00 then to the previous lows around 81.50.

Meanwhile, support from upbeat economic data from New Zealand could even lead NZD/JPY to make new highs past 90.00. At this point though, the RBNZ might start to jawbone again and attempt to trigger a deprecation for the Kiwi. After all, further gains in their currency could make exports more expensive in the international market and thereby weaken demand.

Prepared by Aayush Jindal, Chief Technical Strategist at Capital Trust Markets

To keep yourself updated with the latest financial news, visit the official website of Capital Trust Markets

Capital Trust Markets is an online Forex brokerage firm, headquartered in New Zealand. It was established in 2013, with an emphasis on providing the most excellent customer services in the industry. The trading environment offered to investors and traders is unparalleled – devoid of all common mistakes usually prevalent in the financial trading industry. The focused determination to provide the highest quality products, services, and support to clients and customers is what truly sets Capital Trust Markets apart from every other major brokerage firm.