Over 40 years’ heritage
185,800 clients worldwide
Over 15,000 markets

Day four: our Japan 225 trade

The Japan 225 index hit a low mid-point of 15,208 in Asian trade yesterday and has since rebounded a touch.

Japan
Source:Bloomberg

Following on from my potential trade idea yesterday, as you can see from the hourly chart the trend is still up, although there is still quite a bit of supply coming into the index on moves to 15,500.

Overnight US Q1 GDP was revised lower to -2.9%, however the reaction was muted as traders saw the news as backward-looking. Data that contributes towards the Q2 print has been fairly buoyant of late and thus traders expect a sharp snapback and hence the limited reaction in equities.

Data is on the light side in Asia today, however the Chinese market could be in focus with a number of IPOs due to hit the market, which could prove to be a headwind.

In US trade we get core PCE, which is the Fed’s preferred inflation read and the market is pricing in a 1.5% increase in this data point; a number above here could be good for USD/JPY and thus the Japan 225 index.

I continue to hold a long bias on this index on both a short- and long-term view and will look at profit targets if the position heads higher.

Japan 225
IG Charts

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.