Nasdaq 100, USD/JPY range trade while Brent crude loses upside momentum 

​​​Macro update

Wall Street gains as softer inflation supports sentiment: Cooler US producer price data and another strong round of second-quarter earnings helped lift all three major indices, with the Dow rising 0.29%, the S&P 500 gaining 0.38% and the Nasdaq advancing 0.62%, although semiconductor stocks underperformed.

BlackRock jumps after earnings beat: Shares in the asset manager climbed 6.6% after it reported better-than-expected quarterly results, while Morgan Stanley also exceeded forecasts but finished just 0.4% higher, extending the positive tone set by US banks at the start of earnings season.

SpaceX falls below its IPO price: The stock dropped as low as $132.15 before closing at $135.27, leaving it down 33% from its post-listing high, with investors anticipating further volatility in early August when lock-up restrictions expire and an additional 911.5 million shares become eligible for sale.

Asian semiconductor stocks come under renewed pressure: Japan's Nikkei fell 3% and South Korea's KOSPI declined 6.2%, led lower by Samsung and SK Hynix, as a broad chip-sector sell-off overshadowed Taiwan Semiconductor Manufacturing's record quarterly results, including a 77% increase in earnings.

Oil prices ease after recent rally: Brent crude slipped to $84.95 a barrel as traders locked in profits and assessed the impact of renewed US strikes on Iranian military targets, although prices remained close to one-month highs and were still up around 11% for the week amid ongoing disruption to shipping through the Strait of Hormuz.

Sterling reaches a two-month high: The pound touched its strongest level in two months on expectations that Andy Burnham, widely tipped to become Labour leader on Friday, will appoint a fiscally conservative finance minister, before stabilising at $1.3532 following a 1% rally in the previous session.

Nasdaq 100 trades sideways

The Nasdaq 100 continues to trade sideways in decreasing volatility as the summer holiday period approaches in the western hemisphere. Further range trading looks to be in store.

A slip through Monday and Wednesday's 29,193-to-29,189 lows would probably lead to a retest of the late June-to-early July lows at 28,891-to-28,815 whereas a rise above the 10 and 15 July highs at 29,760-to-29,857 may engage the late June peak at 30,329.

A fall through 28,815 may lead to the 12-to-19 May lows at 28,628-to-28,567 being revisited. Further down lies another potential downside target at the 9 June 28,197 low.

Resistance above the 30 June high at 30,329 sits between the June peaks at 30,587-to-30,762.

Short-term outlook: neutral with a slightly bearish bias while below the 10 July high at 29,857

Medium-term outlook: neutral with a bullish undertone while trading above the 9 June low at 28,197

Nasdaq 100 daily candelstick chart

USD/JPY range trades in 40-year highs

USD/JPY continues to sideways trade in the ¥162.00 region, having so far twice failed to revisit its early July 40-year high at ¥162.84 but held above its ¥161.28 10 July low.

In case of the 8 July high at ¥162.71 being bettered, the ¥162.84 record will be eyed, a rise above which may lead to the November 1986 peak at ¥165.00 being reached.

Minor support is seen along the May-to-July uptrend line at ¥161.68, followed by the 10 July low at ¥161.28. While this level and the early July low at ¥160.48 hold, the medium-term uptrend remains intact.

Short-term outlook: neutral with a bullish undertone while above the 3 July low at ¥160.48

Medium-term outlook: bullish while above the 3 June low at ¥159.37

USD/JPY daily candlestick chart

Brent crude loses upside momentum

Brent Crude's rally from its early July $70.22 per barrel low has so far taken it to this week's $86.10 one-month high below which it is beginning to lose upside momentum.

In case of another down leg being seen, the 22 June high at $81.13 and also the 8 July high at $80.21 may be revisited. Slightly further down meanders the 200-day simple moving average (SMA) at $78.04.

In case of the recent rally extending beyond $86.10, the 8 April and 9 June lows at $88.79-to-$88.86 may be reached next. Slightly further up sits the late May low at $89.65.

Short-term outlook: bullish while above the 15 July low at $82.57

Medium-term outlook: neutral with a bearish undertone while below the 3 June $98.15 high

Brent crude daily candlestick chart