Asia Closing: Markets trading lower, but bulls still hanging on.

USD/JPY H1

USD/JPY rallied significantly on BOJ speculation and not due to increase in global risk appetite. Price has broken away from upward trendline which has been plotted from 1st Oct. L3 acting as support but L3/L4 support zone may not be as strong considering the wide range, coupled with the fact that we do not see significant resistance/support around this price levels recently.

AUD/USD H1

Is 1.03 considered broken? Price is currently trading slightly below 1.03 but today’s L4 and Yesterday’s low maintain good support for Aussie. Price could potentially bounce back up to trade between 1.03 and 1.034, effectively yesterday’s trading range if L4 support remains. Break below exposes L5 of 1.0275 as further support.

NZD/USD H1

L3 acting as intraday support. If broken, price can find further support from downward trendline,, yesterday’s low and L4 close together. Upside could be capped by H3 and Yesterday’s High, which is confluence with consolidation range of 0.8185 – 0.82 found on 18-19th Oct.

Nikkei 225 Futures H1

After a strong showing yesterday, price started Tuesday southbound immediately on Market open. L4 acts as the final recent support for N225 as a break will open up yesterday’s Low and L5 as potential downside targets. Should price stay supported at current level, we could see a repeat of 18th Oct where price was consolidating around 8,975 to 9,025.

*Note: Hang Seng Index Futures not trading due to Hong Kong Bank Holiday

Bottomline:

Disappointing morning for Asian traders as most equities and currencies gave up gains yesterday. Keep a keen lookout on Hang Seng Index tomorrow morning as an indication of how risk sentiment may move tomorrow morning. 

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