The New Zealand services sector expanded strongly in January, easing the negative impact on tourism and commodity exports from Covid-19. December’s data was revised higher, adding significance to the upbeat report. External migration contracted marginally and the NZD/JPY remained inside of its horizontal support area. How will this currency pair trade, moving forward? Today’s fundamental analysis will take a look at price action in both directions.

Japan released its preliminary fourth-quarter GDP during the Asian morning trading session. It came in significantly worse than what economists predicted. A sharp slowdown in business spending led the GDP contraction, followed by a slump in consumer spending. Third-quarter downward revisions added to the bleak report. The Japanese Yen enjoyed safe-haven demand related to Covid-19, but where will price action move from here? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.