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Daily Report: Yen and Nikkei Shrugged Off Weak TankanJapanese markets rebounds strongly today, following US and shrugging off the quarterly Tankan survey. At the time of writing Nikkei is trading over 300pts up, or 1.7%. That followed the rebound in US overnight where DJIA closed up 235.57 pts or 1.47%. S&P 500 closed reclaimed 1900 handle and closed up 35.94 pts, or 1.91%. Yen is staying in range again other major currencies in general. The Tankan large manufacturers index dropped more than expected by 3 pts to 12 in Q3 while the outlook gauge dropped 6 pts to 10. The non-manufacturing index, on the other hand rose 2 pts to 25 and beat expectation while outlook gauge dropped to 9. All industry capex showed 10.9% growth during the period. Some economists noted that the Q3 survey showed general pessimistic sentiment but there are still some hopes from construction spending. Some expected the government to push BoJ harder for expanding monetary easing. | |
Featured Technical Report | |
USD/JPY Daily OutlookDaily Pivots: (S1) 119.55; (P) 120.06; (R1) 120.44; More... USD/JPY is still stuck in range of 118.58/121.62 and intraday bias stays neutral at this point. On the upside, break of 121.62 will extend the rebound from 116.13 and target 125.27/85 resistance zone. We'd cautious on strong resistance from there to bring reversal. On the downside, break of 118.58 will turn focus back to 116.13 support instead. |
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Orders and Options Watch | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
US Session: Orders and Options WatchEUR: The single currency slipped today in European session, offers are lowered to 1.1225, 1.1245 and 1.1260-65, more sell orders are reported at 1.1280, 1.1295-00 and 1.1325-30, selling interest is tipped at 1.1350, 1.1380-85 and 1.1400. On the downside, bids at 1.1200 and 1.1180 were filled but buy orders are still seen at 1.1150, 1.1135 and 1.1120, buying interest should emerge around 1.1100, 1.1085 and 1.1065, fresh demand is located at 1.1050, 1.1030 and 1.1000. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Trade Idea: EUR/GBP - Hold long entered at 0.7320Euro's retreat after faltering below yesterday's high of 0.7437 suggests caution on our bullishness and 0.7360 needs to hold to retain prospect of another rise, above said resistance would extend the rise from 0.6936 low (wave v trough) to 0.7450-55 and later towards 0.7490-00, however, loss of upward momentum should prevent sharp move beyond latter level. Trade Idea : USD/CAD - Buy at 1.3250As the greenback has retreated after rising to 1.3457 yesterday, suggesting minor consolidation below this level would be seen and pullback to 1.3330-35 is likely, however, reckon downside would be1.3290-95 and renewed buying interest should emerge around 1.3250, bring another rise later, above said resistance would signal recent upmove has resumed and extend gain to 1.3490-00 Candlesticks Intraday Trade Ideas Update Schedule (GMT): Elliott Wave Daily Trade Ideas Update Schedule (GMT): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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