Hello guys,
From Graeme speech it is clear that the economy is near its full employment but still stuck in low inflation-a major challenge to major central banks. It is also clear that the strong NZD is hurting exports and this being a major exporting country measures should be taken to abate the marauding kiwi and to resuscitate the failing inflation-remember, part of this exchange rate tragedy that keeps the Kiwi on the upper hand also causes non-tradable inflation low (non tradable inflation contributes to about 50% of the total inflation). Graeme also stated clearly that further cutting of OCR will bring about considerable risk to the economy and perpetuate the already hot housing market and cause bottle necks and therefore conclude that even though further rate cuts-by a further 35 basis points- is unwarranted it is inevitable in the short to medium term. To Japan and news is there will be further easing of the tune of $45B in the next extra fiscal budget meant for infrastructure and welfare, this comes after cabinet approved 28 Trillion Yen of stimulus early in the month.
Technically, on the daily chart, there is a break above the apex of that triangle-check the chart attached and since it coincides with the buy signal from the stochastics, we shall only initiate buys in the 15 Min chart as follows:
Buy Limit: 73.1-73.25
SL: 72.70
TP: a risk reward ratio of 1:3 is recommended.
Have a good trading day.

NZDJPY 4HR Chart-22.08.2016

Source: Dalmas Ngetich

NZDJPY 15 Min Chart-22.08.2016

Source: Dalmas Ngetich

NZDJPY Daily Chart-22.08.2016

Source: Dalmas Ngetich

2 thoughts on “NZD RALLY AS ABE’S $45B FISCAL STIMULUS IS IMPLEMENTED-NZDJPY DAILY ANALYSIS FOR 22.08.2016”

  1. Wayne McDonell - TradersWay.com says:

    Great post! Excellent job!

    1. Dalmas Ngetich - FOREX.TODAY says:

      Thanks Wayne, I hope this trades pans out as expected.

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