Action Insight Daily Report 2-3-23

Yen in Pole Position as US NFP Awaited

Yen is stealing the show in the week of heavy weight events, powering up broadly with help of broad based decline in US and European treasury yields. Swiss Franc is following together with Euro while Dollar is just mixed. On the other hand, Sterling is the worst perform despite BoE rate hike, followed by Aussie and Kiwi. It might look like a risk-off setting, but no, it's not, considering the strong rally in NASDAQ. Focuses will now turn to US non-farm payroll employment report and more wild rides could lie ahead.

Technically, 10-year yield staged an impressive rebound overnight, closing nearly flat at 3.396 after diving to 3.334. 61.8% projection of 4.333 to 3.402 from 3.905 at 3.329 was nearly met already, and there is prospect of a turn around. Extended rebound from current level, followed by break of 55 day EMA (now at 3.595) later in the month, would confirm completion of the correction from 4.333. However, another dive through 3.329 could prompt downside acceleration to 100% projection at 2.974, which is slightly below 3% handle. We'd probably know which way it takes today, and that would also guide the direction of USD/JPY.

In Asia, Nikkei closed up 0.39%. Hong Kong HSI is down -1.40%. China Shanghai SSE is down -0.67%. Singapore Strait Times is up 0.52%. Japan 10-year JGB yield is down -0.0141 at 0.486. Overnight, DOW dropped -0.11%. S&P 500 rose 1.47%. NASDAQ rose 3.25%. 10-year yield dropped -0.001 to 3.396, after dipping to 3.334.

Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol

USD/JPY Daily Outlook

Daily Pivots: (S1) 128.14; (P) 128.64; (R1) 129.18; More…

While USD/JPY weakens this week, downside is still contained above 127.20 support. Intraday bias remains neutral first. On the downside, break of 127.20 will resume the whole decline from 151.93 and target 121.43 fibonacci level. Nevertheless, on the upside, break of 131.56 resistance should confirm short term bottoming, and turn bias back to the upside for stronger rebound to 55 day EMA (now at 133.23) and possibly above.

EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

Cliff Notes: As Global Inflation Risks Recede, Market Expectations Build

Technical Outlook and Review

USD/JPY Faces Selling Pressure Ahead of US NFP Release

China’s Economy Expanding Again, According to Official Data (USD/CNH)

DAX Impulsive Rally Favors Upside And Remain Supported

ECB Review – Markets Conclude ECB is Close to Being Done

Bank of England Review – 50bp Hike Today and a Final 25bp Hike in Store for March

Europe’s Central Banks Deliver Another Rate Hike Dose

Four Guys Walk into a Bar Before Central Bank Meetings…….

ECB Hikes 50bps, As Expected. Another 50bps Hike to Come in March