Nasdaq 100 slips, USD/JPY drops to 7-month low as Brent extends gains

Macro update

Yen surges to seven-month high: The currency climbed 0.9% to ¥152.88 against the dollar, its strongest level since February, after revised data showed faster-than-expected Japanese growth and real wages rose 2.4% in July, their biggest increase since May 2021.

Oil extends gains on Gulf tensions: Brent crude rose for a third straight session above $97 a barrel, close to a six-week high, after Iran threatened to target energy infrastructure across the Gulf, including US oil and gas interests, in retaliation for any further attacks.

South Korean shares hit three-week high: The KOSPI advanced as much as 2.5% for a fourth consecutive session, with Samsung Electronics gaining more than 3% and SK Hynix nearly 6%, as chipmakers rallied following the launch of OpenAI’s GPT-6 Astra model.

Gold firms as dollar eases: Bullion was little changed as the dollar index slipped to a two-week low, with investors awaiting US producer price data on Thursday and consumer inflation figures on Friday.

Australian shares slip on weak sentiment: The benchmark fell 0.6% after a gauge of Australian consumer confidence dropped sharply in September, leaving the market lagging behind gains across much of the region.

Fed rate expectations hold steady: Traders continued to price around a 58% chance of a 25-basis-point hike at the Fed’s 16 September meeting, little changed over the week, as attention shifted towards the upcoming inflation data.

Nasdaq 100 needs to overcome 29,655 to resume ascent

The Nasdaq 100's rise towards the end of last week is likely to be followed by at least a minor setback. For the bull run to resume, a rise above Friday's high at 29,655 needs to ensue. Were this to happen, the late August high at 29,753 would be next in line.

The 55-day simple moving average (SMA) at 29,276 may act as support ahead of the 21 July high at 29,192 and the 6-to-20 August lows at 29,123-to-29,118. More important support may be found between the August and current September lows at 28,953-to-28,876.

Short-term outlook: bullish while above the 28,876 August low

Medium-term outlook: bullish while above the August low at 28,876

Nasdaq 100 daily candelstick chart

USD/JPY drops to near 7-month low

USD/JPY's fall through its key ¥155.23-to-¥155.03 May-to-August lows support zone took it to ¥152.88, a near seven month low before recovering slightly.

Key resistance - because of inverse polarity - is now found at  ¥155.03-to-¥155.23 whereas a fall through today's ¥152.88 intraday low may lead to the January-to-February lows at ¥152.27-to-¥152.10 being revisited.

Short-term outlook: bearish while below the 3 Aug low at ¥155.23

Medium-term outlook: bearish while below the 7 September high at ¥156.28

USD/JPY daily candlestick chart

Brent crude hits 4 1/2 month high

Brent Crude's rally is ongoing with it having risen above $100.50, to levels last traded on May 22.

Minor resistance may be encountered between the mid-May $101.24 low and the 23 April $101.91 high. More significant resistance sits between the late March, early April and mid-May highs at $108.41-to-$109.32.

Support below the 3 September $99.78 high may be found between the late May and early June highs at $98.15-to-$97.72.

Short-term outlook: bullish while above the 4 September low at $95.16

Medium-term outlook: bullish while above the 26 August $87.00 low

Brent crude daily candlestick chart