The e-commerce giant has recently faced a lot of pressure, starting from global uncertainty in China amid lockdowns and geopolitics. The company has been added to the US SEC (Securities and Exchange Commission) delisting queue. Finally, there’s an earnings report coming on August 4. Let’s discuss everything and prepare for the next move.
Japanese Yen Strengthens on COVID-19 Worries
2021-08-16 • Updated
Japanese shares fell on Monday. Investors are concerned about slow economic growth due to the highly contagious Delta variant of COVID-19. The Nikkei (JP225) closed 1.6% lower at 27.500. It is the biggest drop since July 30. These factors led to the yen strengthening as the Japanese national currency usually demonstrates an inverse correlation with the stock market.
What are the reasons?
Japan is still far behind the US and Europe in taking measures against COVID-19. Analysts and experts warn that it can potentially lead to an economic growth slowdown. Tokyo is already under a state of emergency, the fourth so far in the pandemic, though some experts believe it should be expanded to cover the whole country as the number of new infections remains at a record level. The number of daily cases hit 20.000.
Afghan government’s collapse also shocked Asian stock markets as it can impact negatively in long term-period. Some experts claim the market will try not to pay attention to this geopolitical situation, while others believe that the worst awaits ahead.
Let’s look at the charts and find out how Japan’s stock market will behave in the nearest future and how it will affect the national currency.
JP225, weekly chart
On the weekly chart, the price has formed a descending triangle, which is a bearish pattern with the target at 25.000. If the price breaks and sticks under the support line (which is 27.500), it will go down to 25.000.
JP225, daily chart
On the other hand, locally, it is noticeable that during the past month price and RSI minimums have been getting higher. It means that in the short-term Japanese stock market is attractive for investors. For now, it is a good opportunity for a long trade with an entry point at the 27.500-27.600 range. In this case, the targets will be 27.800 (the 100-period moving average), 28.000 (the 200-period moving average), 28.300 (the 200-day moving average).
EUR/JPY, Weekly chart
On the weekly chart, the price has formed a symmetrical triangle. According to our suggestion about the Japanese stock market's weak future and its inverse correlation with the national currency strength, we assume that EUR/JPY might head at least towards the triangle’s median, which is 125. In this case, every pullback might be a good chance to find an entry point for EUR/JPY short trade.
EUR/JPY, 4H chart
Locally, it came to the strong support level at 128,5. According to the RSI, the currency pair is oversold, that’s why we expect a pullback to the 129,2-129,5 range.
US stocks have delivered their worst first half of a year in more than 50 years triggered by the Fed's attempt to control inflation and growing concerns about recession.
Powell wants a soft landing for inflation, as Greenspan did in 1994. But it looks like he will get a hard landing.
The month of February saw markets make several instinctive moves as well as create opportunities for proper leveraging of fundamental releases. Despite being a leap-year, there wasn’t any real impact on price delivery in the course of the month. As we await the opportunities that lie ahead in the month of March, here are a few thoughts to consider.
USD/CHF saw a rebound after declining for two days straight, climbing towards the important psychological level of 0.8800 during Wednesday's early Asian trading session. There's some pressure on the Swiss Franc (CHF) as traders await the Swiss ZEW Survey – Expectations report scheduled for later today. Moreover, investors are keeping...
In the early hours of Tuesday, the US Dollar faces challenges in maintaining its strength against major currencies, with the US Dollar Index struggling to surpass the 104.00 mark. Investors are eagerly anticipating the release of key economic data, including January Durable Goods Orders and the Conference Board's Consumer Confidence Index for February. Additionally, the economic calendar includes reports...