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.