Just one of the JPY pairs soaring
Now the risk sentiment is less positive today. However, the bids into the JPY are still mild and the NZDJPY pair has broken higher of a key daily trendline. The bond yield divergence is in place between the NZ10Y and the JP10Y as the RBNZ looks to hike four times next year and the BoJ is on hold as ever.
The only risk to this trade is bids coming into the JPY on risk worry. There is plenty of worry out there, so not a risk that can easily be ignored by any means. However, any sharp dips in the pair should just find more confident buyers as long as the risk is not game changing..
