Nasdaq 100 trades in record highs while Brent crude, USD/JPY drop
Technical analysis of the Nasdaq 100 as it continues to trade in record highs while Brent crude, USD/JPY slide.
Macro update
Global equities reach record highs: MSCI’s All-Country World Index, Emerging Markets index and Asia-Pacific benchmark ex-Japan all hit fresh records as investors extended AI-driven equity buying, while the S&P 500 and Nasdaq also closed at new highs overnight.
South Korea rally: The Kospi surged 6.6% and moved above the 7,000 level for the first time after reopening from holiday, supported by a 14.8% jump in Samsung Electronics, which surpassed a $1 trillion valuation on optimism around AI semiconductor demand.
AI spending boom: Chipmakers and technology stocks continued to lead gains after AMD forecast stronger-than-expected second-quarter revenue, with robust hyperscaler spending on AI infrastructure supporting Asian tech, industrial and materials sectors.
Yen intervention speculation: The yen strengthened sharply to around 155 per dollar after gaining nearly 2% intraday, with traders citing possible intervention by Japanese authorities following renewed warnings against speculative currency moves.
Oil falls on Iran hopes: Brent crude dropped around 1.7% to near $108 a barrel after Donald Trump said there had been “great progress” towards a potential deal with Iran and announced a temporary pause to a US operation escorting ships through the Strait of Hormuz.
Dollar weakens, gold rises: The dollar index fell 0.3% as the euro, sterling, Australian dollar and New Zealand dollar advanced, while gold climbed more than 2% amid currency volatility and ongoing geopolitical uncertainty.
Nasdaq 100 trades in record highs
The Nasdaq 100 continues its surge higher and is fast approaching the 100% Fibonacci extension of the 2022-to-February 2025 advance, projected higher from the April 2025 low at 28,324. Further up sits a 261.8% Fibonacci extension at 28,860 which may also be reached.
Minor support may be found around Friday and Monday's highs at 27,822-to-27,787.
Short-term outlook: bullish, targeting new record highs while above the 28 April low at 26,878
Medium-term outlook: bullish while above the 21 April low at 26,405
Nasdaq daily candlestickchart
USD/JPY sideways trades
USD/JPY continues to range trade in low volatility below the ¥159.84-to-¥159.86 recent highs but above its mid-April ¥157.59 low and the ¥157.53-to-¥157.51 mid-March-to-April lows.
Above ¥159.86 lie the ¥159.90 mid-March high and the ¥160.03 early April peak.
Short-term outlook: neutral outlook while below the 7 April ¥160.03 high but above the 19 March low at ¥157.51
Medium-term outlook: neutral with a bullish bias while above the 19 March low at ¥157.51
USD/JPY daily candlestickchart
Brent crude drops
Brent crude gapped lower and revisited its 23 April high at $101.91 per barrel on hopes of the Iran and the US coming to an agreement. Another potential downside target may be spotted around the mid-April high at $99.74.
Minor resistance now sits at the $105.05 early May low.
Short-term outlook: bearish while below the 4 May $113.54 high
Medium-term outlook: neutral with a short-term bearish bias while below the 4 May high at $113.54 with the $95 region being back in sight.
Brent crude daily candlestickchart
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