NZDJPY (New Zealand dollar/ Japanese yen) is a trading instrument with low level of liquidity.
Trading NZDJPY, one should take into account numerous peculiarities of New Zealand economy, including the country’s interest rate, GDP, business activity, and foreign trade.
For a closer analysis of the New Zealand dollar rate movement, one should control the data related to production of sheep wool, as its export is among the key economic factors of New Zealand.
In addition, the country’s market is strongly dependent on its major partners, i.e. the USA, Australia, and Asia-Pacific region. So, for monitoring the NZDJPY rate movement, it is important to consider all significant economic indicators of New Zealand partner countries.
Due to being a tricky instrument, NZDJPY cannot be recommended to beginners, as its reaction to various political and economic events is strong. The Japanese yen can jump versus the kiwi, and this can have a negative impact on the currently open trades.