NZD/JPY - Japan set to release CPI later today, will disinflation weaken the yen?

Taking a look at the NZD/JPY pair after the sell-off across all of last week. New Zealand’s central bank struck a less hawkish tone last week, which saw the Kiwi sell-off against the yen, However, with some support and consolidation on Friday, we may see some recovery, especially with Japan set to release its CPI data in the Asian trading session (23:30 GMT)/ Currently, the pair is trading at around NZ$0.9174. We can see that inflation is starting to cool off globally, hence, if similar signals are present in Japan this could weaken the yen further. Looking at the chart, we can see that on the 4-hourly timeframe, the pair had found support along its 200-day moving average, or respectively, NZ$0.9114. it has bounced off the moving average and now edged above the 20MA. The 20MA should now offer support until the data later today. A move below the 20MA could then see a retracement back towards the 200MA for a re-test. Towards the upside, psychological resistance reads NZ$0.9187 and then along the 50MA, which currently reads NZ$0.9240. Looking at the technical indicators, the MACD has turned positive once again and the RSI is now neutral as it reads 45.