stocks mixed

Asian Markets Mixed, Cryptocurrencies Rally

Asian markets finished mixed on Thursday as the recent rebound from the March lows run out of steam amid dismal economic data. IMF forecast that Asia’s economic growth will halt in 2020 for the first time in 60 years while it expects a 7.6% growth in 2021. The Japanese business confidence plunged to fresh decade lows in April, while the retail sales and industrial production data from the USA came in at multiyear lows. 

The Nikkei 225 finished 1.33% lower at 19290; The Shanghai Composite closed up 0.31% at 2819, while the Singapore Straits Times ended 0.56% higher at 2620. The Hang Seng was 0.56% lower at 24012. Australian equities finished 0.90% lower at 5416.  

European markets started the session higher; the German DAX is 1.29% higher at 10,412. CAC 40 index is 1.27% higher at 4,410, while the FTSE MIB in Milan is 2.28% higher at 17,108. In London, the FTSE 100 is 0.52% higher at 5,626.  

XAUUSD Daily Chart

In commodities markets, the crude oil price trades 0.35% higher at $19.94, while the Brent oil is 1.42% lower at $27.58 per barrel. The gold price is 0.32% higher at 1719. The gold first resistance stands at $1,741, the recent high, while the initial support stands at $1,610, the 50-day moving average. Silver (XAGUSD) is 0.26% higher at $15.44.    

Cryptocurrencies rally today, Bitcoin’s (BTCUSD) price is 4.14% higher at $6,904, hitting the daily low at $6,458 and the daily high at $6,970. Bitcoin’s (BTCUSD) technical data outlook is bearish, as the price hovers below the major daily moving averages. Only a break above the 7,000 mark might cancel the recent negative momentum. The first support for BTCUSD stands now at $6,135, the low from April 1.

On the other side, initial resistance stands at $7,456, the high from the previous week. ETHUSD is 8.34% higher, at $165.78, with capitalization at 18.20 billion. The initial resistance for Ethereum stands at 176.55 the high from last week, while the first support stands at $142.55, the low from April 6th trading session. Ripple – XRPUSD is 3.30% higher at 0.1864. Litecoin (LTCUSD) is 5.95% higher at 41.60. The crypto market capitalization stands now at $197.33 billion.

In the Lookout: Japan Tankan manufacturers index came in at -30 in April, making the lowest level since October 2009. The Japan non-manufacturers index came in at -23 in April versus -10 in March. The Foreign Investment in Japan Stocks was at ¥-15.5B on April 10, the previous reading was at ¥422.7B. 

Trading Perspective: In the fx markets, GBPUSD is 0.30% lower at 1.2472. The EURUSD is 0.32% lower at 1.0873; the Australian dollar is 0.29% lower at 0.6299 against the greenback. The Yen is weaker against the USD; the USDJPY is 0.35% higher at 107.78. NZDUSD trades 0.41% lower at 0.5969.

USDJPY Higher As Risk Appetite Returns

USDJPY Daily Chart
USDJPY Daily Chart

USDJPY trades 0.22% higher at 107.64 in a volatile session. The pair hit the daily lows at 107.26 after worst than expected economic data from Japan. The Tankan business mood plummeted to fresh decade lows on coronavirus worries. The Japan manufacturers index came down to -30 in April versus -20 in March. The Tankan non-manufacturers index dropped to -23 in April vs. -10 in March, the lowest reading since 2010. 

The Japanese Prime Minister Shinzo Abe will declare a nationwide state of emergency. The Prime Minister also said that they got the funds for the 100,000 Japanese yen cash handouts. Meanwhile, a survey of Japanese firms, shows that most of them felt the Japanese government’s $1 trillion relief package to battle the coronavirus crisis was insufficient and a little too late.

On the technical side, the first resistance for the pair stands at 108.07, the daily high. The 200-day moving average at 108.30 is the next supply zone. A break above might test the 50-day moving average at 108.56.

On the other hand, immediate support for USDJPY will be met at 107.26 the daily low. If USDJPY breaks lower, the next support stands at 106.92, the low from yesterday’s trading session. More bids might emerge at 106.74, the low from March 18. 

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