Archived IMT (2009.05.28)

S&Ps reaffirmation of New Zealands credit rating lifted NZD to 7 month highs vs USD and JPY. NZDJPY breaks the triple top resistance, joining all currencies in damaging the yen amid prolonged signs of Japanese outflows chasing higher yields elsewhere. NZDJPY could be set up for 61.30 and 62.50, especially as periodic rallies in equities further drive down the yen. Our negative positioning in EURJPY and GBJPY has been largely eroded by the ensuing yen weakness and accumulated bids in EUR and GBP amid neutral-to-positive risk climate. EURJPY breaks above 134.30 resistance, setting up for 137.30 on the weekly chart. NOK lost some ground after Norway lowered its 2009 CPI and money market rates forecast to 2.2% and 2.5% from 2.3% and 3.1% respectively.