In an interview over the weekend on CNBC governor Haruhiko Kuroda said, ‘in order to reach 2 per cent inflation target, I think the Bank of Japan must continue very strong accommodative monetary policy for some time’, this ahead of a rate setting meeting on Thursday and Friday this week. Readers should keep in mind that Tokyo CPI, excluding fresh food (the country’s preferred measure) has rarely printed over the 2 per cent (current) target since the Nikkei 225 peaked in 1990.
UK deal making makes a good start this year. Data from Thomson Reuters has M&A activity in Q1 2018 at £196.4 billion, the highest since 2000, reports City AM. Though the number of deals are down 20 per cent from this time last year, the size of them more than made up for the drop.
DAX 30
A perfect doji on the weekly chart at the 50 per cent retracement level underlines the fact that this market is looking for direction.
SHORT TERM TRADER: Small short at 12430; stop above 12650. Target 12000.
POSITION TAKER: Square.
FTSE 100
Stalling today in no-man’s land and for no apparent reason.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
S&P 500
Retreating from the long-term trend line (which has now become resistance) with a shooting star candle on the weekly chart.
SHORT TERM TRADER: Small short at 2689; stop above 2725. Target 2580.
POSITION TAKER: New short at 2673; stop above 2740. First target 2560.
BRITISH POUND/US DOLLAR
Last week’s price action strengthens resistance at the 1.4350 area – this year’s high and in turn the strongest since the referendum.
SHORT TERM TRADER: Square.
POSITION TAKER: New small long at 1.4025; stop below 1.3900. Target 1.4345.
EURO/US DOLLAR
Forcing itself into the apex of triangle consolidation as it manages to ignore all news.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Stalling yet again against long term resistance. As Germany has been doing for a long time, now the rumour mill has it that Turkey is repatriating its gold held at the US Federal Reserve.
SHORT TERM TRADER: Small short at 1342; stop above 1356. Target 1320.
POSITION TAKER: Square.
Nicole Elliott is a long-standing Member of the Society of Technical Analysts and has taken over the IC’s trading coverage. She is regularly interviewed and quoted by the financial media, is a conference speaker, and author of several books on charting.
