NZDJPY - Biased Long on NZD Short Squeeze

New Zealand Q2 inflation was one-tenth below expectations, the market sold off briefly but then a short squeeze followed. RBNZ's Q2 sectorial factor model inflation index up to 1.7% Y/Y likely the cause. If risk appetite remains solid, NZDJPY is a good candidate for playing further Kiwi strength.

Our main target is 78.00 for this momentum move.