After the Bank of Japan raised its rate by 25 bps, NZDJPY trading is volatile. The intraday trend is bullish as long as the support at 89 is maintained. The pair went up to an intraday high of 90.06; it is currently trading around 89.87.
The Bank of Japan emphasized a sluggish, data-dependent normalisation, maintaining generally easy financial circumstances as it lifted its short-term policy rate from 0.50% to 0.75% in December 2025, its second increase this year and its greatest level in roughly three decades. With real GDP increasing mildly around potential thanks to higher wages and government backing but limited by weak external demand and demographic difficulties, its October 2025 Outlook forecasts Japan on a modest, unspectacular growth path supported by stronger exports, growing production, and investments in capacity and digitalization. With core CPI slowly approaching levels compatible with price stability supported by wage increases, tight labor markets, and ongoing price pass-through, inflation is projected to be around the 2% target over the medium term; markets expect only modest further increases, with a Reuters poll indicating 1.0% by about September 2026 and more hawkish private projections predicting rates reaching 1.5–1.75% by 2027 if inflation remains close to target.
Oscillators and moving averages to forecast the trend of NZDJPY
CMP- 89.90
EMA (4-hour chart)
55-EMA- 89.84
200-EMA- 88.97
365-EMA- 88.38. The pair trades above the short (55 EMA) and long-term moving average(200 and 365).
Major support- 89.20. Any breach below will drag the pair down to 88.70/88.40/87.99/87.20/86.65/85.37/85.
Major resistance - 90. Any break above 90 confirms minor bullishness, a jump to 90.60/91.39/92.
Indicator (4-hour chart)
CCI (50)- bearish
Average directional movement Index- Neutral. All indicators confirm a neutral trend.
It is good to buy on dips around 89.48-50 around with SL around 89 for TP of 92.


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