T4T Asian Market Preview

Good morning traders and welcome to the Asian market preview. Well it's mid-summer here in Sydney and it feels like mid-winter in London. It is hammering down with rain and not very nice at all. Let's get into these markets. We are starting to see some decent movement and all eyes are really back onto the stock markets and that's been the theme for the first week of trading since the finish. I still think liquidity is a little bit low so I'd trade still with the holiday mentality but the next few days and certainly by next week we're back in. Everyone's back up and it will start trading more naturally. Now what we're going to be looking at I suppose for our first indication today is going to be that Nikkei open and then the Chinese opens as well. This is my Nikkei chart. Just having a look at this. This will dominate dollar yen today and as you can see Nikkei back down on its lows sitting on this sort of trend line. I'm thinking if we get an open below this we could see a movement to the downside fairly aggressively and that would also lead to a movement in dollar yen. So swipping over to that I've got a downside trend line coming in here. It's a little bit lower. It's sort of well under 118.80 but if not probably there'll be some sellers sitting beneath the cloud here and there's certainly some sellers around about this trend line up here as well. I think that's certainly the trend we're looking for but obviously keep an eye on those stock markets if you've got positions in the yen and certainly in the yen crosses as well which is well worth looking. So we got a break last night in the Aussie yen and there you go it's coming back up towards this line. I'm probably going to be looking back towards this cloud as well to get short there. Euro yen also looking pretty nasty. Broken down here there'll be a few guys short down through this level. I'll be keeping on that during the day. Really probably looking to be selling back up towards this trend line. This is actually a massive trend line on the daily so I'll try and bring that into the hourlys for you. We spotted that one yesterday so here's the hourlys to give you a bit of a better better idea of what we're looking at. Probably today be looking to sell back towards this previous break level and if it coincides with the bottom of the cloud it's a sort of a double whammy there. Okay guys, on the fundamental data release front there's not too much to talk about in the Asian session. We did have the global dairy prices out from New Zealand overnight. They came down from minus 1.6 and that obviously led a bit of a bearish tone to the Kiwi as well. Break down through this trend line, retraced and then came back off it. So I think we'll probably be drawing fresh trend lines trying to look for better levels to sell. I'm thinking maybe around 67.40 on the day for us. Once again keeping an eye, double bearish so you've got the worst Kiwi dairy figures plus pressure on the stock markets. Maybe Kiwi Yen could also be the currency we look to get into. Drawing a fresh trend line in here. There we go, come on. It's not doing it for me is it? There we go. Looking to probably sell back to the bottom of this cloud setup or maybe even a break through this downside trend line when I eventually get it onto its lowest point. Get on there. There we go. Maybe a break down here through 79.50. So have a look at those guys. We're certainly back in. All eyes are on the stock markets. Just having a little check on the futures, what they've got priced into. The Dow basically finished up sort of flat. So we're going to look for the Nikkei for the lead and that's going to be 11 o'clock Sydney time. They've got priced in just minus 10. So I suppose conversely, if we don't start to see the negative stuff coming out from the Nikkei and from the stock indices, then maybe we're going to see a bit of a retracement. And obviously, Dolly Yen, you're probably going to be looking to buy somewhere around this 118.80 level. It's worked a couple of times for a few guys that would be bullish. And then maybe a break of the cloud plus this trend line up here. So certainly, if we do see a recovery in those markets and the US rate outlook does indicate that they don't think this is too much of a problem, then maybe these are good levels to be getting long down here if that's your view. So good luck today, guys. For the members, give us a shout in the trade zone. When I asked if you need any info from us, just whip us an email to info at traders for traders dot com and we'll get back to you straight away. Good luck out there. It's going to be a it's probably a fairly quiet session here in Asia, but certainly this week I'm looking for some decent moves and decent money making opportunities. Thanks, guys. Have a fantastic day.