The NZDJPY quotation shows how many Japanese yens can be bought with one New Zealand dollar. The currencies are not exchanged directly: they are valued against the USD, so the NZDJPY is a cross rate.
The NZDJPY's volatility is medium, even though the two currencies are quite volatile when taken separately. That's because this instrument is not popular and, therefore, not liquid enough. At the same time, it's easy to make forecasts for the NZDJPY. Professionals recommend using technical and fundamental analysis tools to make your predictions more accurate.
To conduct research, you'll need standard data, such as GDP, inflation and employment stats, interest rates, and business activity. Also, use the indicators that reflect the specific features of New Zealand's and Japan's economies.
Both countries are developed island states in the Pacific Ocean, but their economic patterns are quite different. The NZ economy is based on agricultural exports. Their share is so high that the country has its own platform for trading milk. Favorable climate conditions and a unique landscape attract crowds of tourists.
Japan is a high-tech country. Scientific discoveries, inventions, media products, and game development impact the national currency's rate. Educational, public health, and insurance services account for a big share of Japan's economy. Despite a lack of large space meant for agricultural production, the country successfully grows rice, fruit, and vegetables. Besides, Japan has a big fishing fleet.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
