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Nasdaq 100, USD/JPY remain bid as Brent crude slips
Technical analysis of the Nasdaq 100, USD/JPY as they look bid while Brent crude slips.
Macro update
Asia markets falter: Asian equities traded lower as stronger-than-expected US inflation and the fragile Iran ceasefire dampened risk appetite, with MSCI’s Asia-Pacific index ex-Japan down 0.6% and the Nikkei 225 slipping 0.2%.
Korean stocks slide: South Korea’s Kospi dropped as much as 3.2% before paring losses, extending Tuesday’s sell-off after a powerful AI-driven rally left the market susceptible to profit-taking.
Oil remains elevated: Brent crude fell 1.2% to $103.86 and WTI declined 1.1% to $100.90, though both remained above $100 as the Iran conflict and continued closure of the Strait of Hormuz threatened global supply.
Fed hike bets rise: US inflation accelerated to 3.8% year-on-year in April, the strongest increase since May 2023, prompting markets to fully price out Fed rate cuts this year and lift the implied probability of a December hike to around 35%.
European markets set to rebound: European equities were expected to open firmer, with the FTSE 100 seen up 0.6%, the DAX 0.5%, the CAC 40 0.6% and Italy’s FTSE MIB 0.7%, as attention shifted back to earnings following Tuesday’s declines.
UK politics weighs on sterling: Sterling fell 0.45% against the dollar and weakened to its lowest level against the euro since 28 April, as investors monitored mounting pressure on Prime Minister Keir Starmer after Labour’s poor local election results, while 10-year gilt yields moved higher.
Nasdaq 100 trades near record highs
The Nasdaq 100 dipped on Tuesday but will remain immediately bid while Tuesday's low at 28,628 underpins.
A rise above Monday's 29,372 high would likely engage the psychological 30,000 mark.
Short-term outlook: bullish, targeting new record highs while above the 12 May low at 28,628
Medium-term outlook: bullish while above the 28 April low at 26,878
Nadaq daily candlestick chart
USD/JPY probes resistance
USD/JPY nears last week's high at ¥157.93 which may act as resistance. If overcome, the 55-day simple moving average (SMA) at ¥158.50 may be reached.
Minor support sits around the 8 May high at ¥157.00.
Short-term outlook: bullish while above the 11 May ¥156.39 low
Medium-term outlook: neutral with a bullish bias while above the 6 May low at ¥155.03
USD/JPY daily candlestick chart
Brent crude consolidates
Brent crude is seen coming off Tuesday's $106.15 per barrel high and looks to be sliding towards its 23 April high at $101.91. Further minor support sits around the mid-April $99.74 high.
Minor resistance can now be spotted at the $105.05 early May low, ahead of the 12 May $106.15 high.
Short-term outlook: neutral while below the 12 May $106.15 high
Medium-term outlook: neutral while below the 4 May high at $113.54 but above the current $94.64 May low
Brent crude daily candlestick chart
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