NZD/JPY Steadies Amid Yen Strength; Bullish Momentum Intact with Key Support Holding

NZDJPY pared some of its gains as yen recovered after strong Tokyo CPI data. The intraday trend is bullish as long as support at 87.40 holds. Having reached an intraday high of 88.82, it now trades around 88.106.

In October 2025, Tokyo's inflation spiked, with headline, core, and core-core CPI all increasing to 2.8% year-on-year, exceeding market expectations and the Bank of Japan's 2% target. Rising food costs—notably a 38.4% increase in rice prices—and the end of water price subsidies powered the acceleration, while service sector inflation stayed low. Following negative cries on its board for stricter policy after holding rates at 0.5%, this greater-than-expected inflation supports more Bank of Japan rate increases. As markets expect persistent core inflation of nearly 3% into year's end, the yen increased, indicating ongoing pricing pressures across Japan's economy and thereby affecting the BOJ's normalization path.

Oscillators and moving averages to forecast the trend of NZDJPY

CMP- 88.10

EMA (4-hour chart)

55-EMA- 87.75

200-EMA- 87.61

365-EMA- 87.24. The pair trades above the short and below long-term moving average.

Major support- 87.80. Any breach below will drag the pair down to 87.40/86.95/86.40/86/85.37.

Major resistance - 88.50. Any break above 88.82 confirms minor bullishness, a jump to 89.25/90.

Indicator (4 hour chart)

CCI (50)- bullish

Average directional movement Index- Bullish. All indicators confirm a bullish trend.

It is good to buy on dips around 88 with SL around 87.40 for TP of 89.20/90.