FXstreet.com (Córdoba) - The Yen is stronger on Wednesday across the board. Against the New Zealand Dollar is soaring. NZD/JPY tumbled 300 pips and fell from 68.25 to 65.25, posting a 3-week low. The pair fell constantly all day long and recently, after the decision of the Reserve Bank of New Zealand to leave interest rates unchanged, tumbled from 66.00 to 65.25.
John Hardy, analyst at Saxo Bank, comments: John Hardy, The NZDJPY pair advanced several percent on strong risk appetite and the latest interest rate scare before this week's start. But the latest, very steep sell-off suggests that the tide may be turning here. A significant breach of the 66.00 area in the coming weeks would help confirm that the high is in for the pair. The correlation of NZDJPY with the S&P500 in Q3 was 0.91 - very high - so any downside view will need a weak stock market, and steady to lower interest rates as well.