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Stronger Yen isn’t standing in the way of the risk managers in Japan as the Nikkei continued its rebound, launching 2.3% higher and bouncing nicely off its rising weekly trendline (lower black line in daily chart below.) This is still tentative and a reversal of the usual inverse correlation with Yen is required to help this up to 16300 points in the short term:

The ASX200 rallied from start to finish, getting back above the 200 day moving average lifting nearly 2% in line with the positive mood. SPI futures are pointing to a modest open, and I’m watching the daily high moving average around 5300 points for a follow through here with heavy resistance at 5400 points the terminal target:

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On to Europe, where short covering has turned into outright speculative buying with a huge gap up on all bourses. The German DAX closed up over 3% in one of its biggest daily moves for nearly a year, blowing through resistance at 9700 points but not taking out daily resistance. This is a very interesting swing trade and will get even more volatile tonight with the ZEW survey and Mario Draghi talking up the EU – watch out:

US stocks again followed the positive European lead with only a mild selloff reversal late in the session with the S&P500 up 0.6% at the close. This rally is based purely on confidence that the polls will remain positive for a Brexit “no” vote, so volatility will rule here. My target is back up to 2100 points but with swings the play of the week:

On to currencies, where Sterling and Euro continue to surge back on the positive (or is that negative) Brexit polls with a big gap up on the Monday morning open (I hate Mondays for that reason). I’m still targeting a mid week level just above the 1.14 handle and then possibly up to 1.15 if the “No” campaign continues to falter:

Yen remains strong as a safe haven bid, sending the USDJPY back below the 103 handle overnight. This is a wide channel and USDJPY remains heavily oversold so a bounce up to 109 in the medium term cannot be discounted, but the intraday lows just above 103.40 aren’t far away – if breached that could see 100 very soon!

The Aussie dollar is being pushed up by a rising tide of risk and surged to 74.5 cents against the USD overnight, matching by not exceeding the highs reached last week. Daily momentum is positive, but the four hourly chart shows overbought status which should revert soon. Support remains firm at 73.30, so watch that daily uptrend line:

Oil continues its rebound, but this time following stocks higher on the risk-on mood with both markers up 2.5% or more. WTI almost broke the $50USD per barrel level and a little higher than that corresponds to resistance that needs to be cleared to keep the daily trend intact:

Gold remains stuck below its 2015 high at $1304USD per ounce with an undecided daily candle possibly setting up a bearish double top here if momentum can’t get, well, momentum. I’m watching the shiny metal closely on the intrasession timeframes for signs of a breakout here, but it could be a false move leading into Brexit:

The data calendar heats up today with the RBA minutes released just before lunch alongside house prices. Nothing much else in Asia while the European session volatility will be the name of the game with the German courts ruling on the ECB OMT operations and then the closely watched ZEW Survey thereafter. Oh and the continual polls about Brexit…The night closes with two speeches by central bankers – Yellen and Draghi – to add to the confusion.

Macro Morning