By Margaret Yang
Yesterday, BOJ had decided to keep the expansionary of monetary base at 80 trillion yen and policy rate at minus 0.1% unchanged. Yen strengthened mildly following this news, and now it’s trading at around the 113.40 range. Nikkei fell 116 points and closed at 17,117 yesterday. Nikkei futures dropped further after cash market closed as Crude oil continued to slid. Hong Kong is down 0.72%, Singapore fell 0.40%. AUDUSD came down for the second day as commodity prices went down.
Key technical levels to watch:
- Immediate support level 0.736
- Testing inner upper Bollinger band at 0.7463
- MACD indicated overbought, momentum may slowdown
Crude Oil West Texas – Cash
WTI Crude Oil went down for a second day, following Iran’s plan to increase its daily output to 4 million barrels before considering an output freeze. Currently, the country’s output is about 3 million barrels a day. This sent the WTI April contract lower (Below $37), down over 4.2% this week.
- Double bottom pattern has completed
- MACD indicate overbought, and momentum is slowing down
- RSI at 61%, near to overbought level
Margaret Yang Yan, CFA, is a market analyst for CMC Markets Singapore.