This is the forex quote for the New Zealand Dollar vs. Japanese Yen exchange rate. NZD (the 'base currency') is quoted in terms of JPY (the 'counter currency'). The Yen is a historically low-yielding currency, making an attractive vehicle to fund carry trades (where traders borrow cheaply in JPY to buy higher-yielding currencies, including NZD). Investors tend to favor carry trades at times of optimism about global economic performance and stability; they shun them at times of market stress. This makes NZD/JPY sensitive to swings in broad-based market sentiment trends. The pair is likewise responsive to economic news - both domestic and that of key trading partners (notably China) - that shapes expectations for Reserve Bank of New Zealand monetary policy.
The Reserve Bank of New Zealand’s decision in February sent the New Zealand Dollar on a four week decline across the board. It’s highly unlikely that RBNZ Governor Graeme Wheeler will alter his recently dovish tone at the RBNZ meeting this week, especially after Q4’16 GDP data came in at a slower pace than anticipated.