 Tools for TradersTop Movers | Heat Map | Pivot Point | Pivot Meters | Action Bias | Volatility Charts Action InsightDaily Report: Trade War Theme Dominates Markets, Dollar Stays Weak Trade war continued to be the main theme in the financial markets. In particular, investors are getting increasing concerned with the reported USD 40b tariffs on Chinese goods by the US. DOW closed -1.0% lower overnight to 24758.12. S&P 500 was down -0.57% while NASDAQ lost -0.19%. In particular, Boeing dropped more the -2% on worries on retaliation by China. In the currency markets, Canadian Dollar is trading as the weakest major currency for the week, followed by Dollar. Sterling is leading the way, followed by Yen. Both Sterling and Yen are also strong today. SNB rate decision will be a focus today but it's unlikely to trigger much volatility. Technical OutlookUSD/JPY Daily Outlook Daily Pivots: (S1) 106.01; (P) 106.37; (R1) 106.69; More... USD/JPY's fall from 107.28 extends to as low as 105.78 but stays above 105.24 low. Intraday bias remains neutral at this point. The consolidative trading from 105.24 is still in progress and could extend. But after all, near term outlook remains bearish with 107.67 resistance intact. And deeper decline is in favor. On the downside, break of 105.24 will resume larger decline from 118.65 and target 100% projection of 118.65 to 108.12 from 114.73 at 104.20 next. On the upside, firm break of 107.67 resistance will indicate near term reversal, on bullish convergence condition in 4 hour MACD. In such case, outlook will be turned bullish for 110.47 resistance next. Suggested ReadingsCan Gold Price Gain Upside Momentum? Elliott Wave Analysis: CADJPY Further Downside To End Wave 5 EUR/NZD In Focus Ahead Of NZ GDP USD/CHF One To Watch Amid Heightened Trade War Fears, SNB Decision Economic Data
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