Asia Closing: Prices mostly flat after strong Friday movements.

USD/JPY H1

Trading back below 80.0, with 79.80 acting as intraday resistance. break above 79.80 brings top of 22-24th Oct trading range back into focus, which coincides with H3 of 79.88. Support can be found around 79.40 should price break below last Friday’s 79.50. Keep a lookout tomorrow morning before BoJ’s rate decision. There has been a lot of talk about intervention by key cabinet members of Japan

AUD/USD H1

L3 acting as good intraday support for AUD/USD. As Europe market open lower, we could still see L3/L4 being threatened for the rest of the day. Break below L4 opens up consolidation zone of 1.033 to 1.030 found between 21st Oct to 22nd Oct for reference. 1.04 remains as a strong resistance which is also in between H3/H4 resistance zone.

NZD/USD H1

Confluence between L3 and upward trendline providing support for Kiwi. Resistance can be potentially found around Last Friday’s high stretching to H3 of 0.824. Break below L5 of 0.8155 exposes 0.81 round number which was the previous swing low, also potentially forming a double top along the way should price fall and break L5 today.

Nikkei 225 H1

Price remained heavy from Monday Open, though we could still see some support from Friday’s Low and also low on 23rd Oct. 9,000 round number could provide resistance should price rally higher while a break below L4 could open up 8,800 round number (L5) as lower target.

Hang Seng Index Futures Daily

Price heading lower after barely posting new 2012 highs. Currently price is close to 1st May price of 21,400, which was the beginning of the great sell-off in May where price hit a low of  18,000 by June. Nonetheless, the same price point of 21,400 can also provide support which could still push prices to another 2012 high.

Bottomline:

Equities and currencies trading lower on Monday, with continued pressure coming in during Europe session. Despite Chinese economy looking slightly more optimistic, should the main threat from Euro-Zone remain unresolved, we could see a turn in sentiment that could trigger a sell off in equities similar to 1st May which is exactly half a year away when we reach coming Thursday. 

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