Channel Break In Play
The channel break highlighted last week in the NIKKEI has seen the market moving well above the 29464.9 target issued. With the US labour reports diluting any likelihood of the Fed tapering in the near term, and with the Japanese PM candidate Fushida calling for a huge new economic stimulus package, the NIKKEI has been given plenty of room to run higher in the near term. Fushida’s chances of election have increased since current PM Suga announced that he will not be running for re-election. With risk assets likely to remain supported on the back of the US labour reports, the near-term outlook remains favourable for the NIKKEI while 29464.9 holds as support. Above here, bulls can look to 30502.8 as the next target.
Key Data to Watch
Aside from domestic data, the main-focus this week is likely to be on the next round of US data with CPI and Retail Sales both due. Any further weakness is likely to act as an accelerant for the current moves, sending USD lower, allowing for risk assets to move higher. Any upside surprises, however, could see risk assets recoil if USD strengthens.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.