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The Nikkei continues to be slammed on safe haven purchases of Yen, down nearly 4% and taking out all of last months gains. The February low at 14400 points is my target here with profit taking soon as price action is oversold and the BOJ meeting coming up tomorrow:

Playing catchup from the silly holiday, the ASX200 fell down 100 points straight away, taking out the 200 day moving average and all carefully built up support from the last month of trading. This remains another market dependent on central bank easing, so all eyes on RBA, with 5000 my target here if 5220 or so remains resistance:

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On to Europe, where stocks continue to sell off on speculation Brexit comes off as the polls say it will (although I don’t see the problem….) The German DAX fell 1.5% and remains on target here for the April lows around 9400 points. I still see the possibility of a bounce as this market continues to oscillate in a broad bear market downmove (see the upper black trend line):

US stocks followed but staged a late comeback with the S&P500 only down 0.2% at the final bell. ATR support remains intact so I’m watching for a possible bounce here although a “surprise” DOE oil report could send it below support swiftly:

On to currencies, where Pound Sterling remains under pressure on Brexit which is contagious for Euro, falling to the 1.12 handle overnight. The four hourly chart shows the steep decline from the 1.14 area last week. Daily support is coming up quickly – the black lower trend line – at 1.16 so that’s my target for now:

Yen remains strong against USD on the safe haven trade, with USDJPY remaining in a strong downward daily trend channel. The four hourly chart is suggesting a bullish falling wedge pattern with a base at just above 105.50 area. This is an interesting trend going into Thursdays BOJ meeting so expect the unexpected:

The Aussie dollar remains below 74 cents against the USD with the four hourly chart firming on the downside although we are slowly getting to oversold status here. Todays Westpac consumer confidence, if bullish, could see a breach of the upper trendline, but ATR resistance at 74.5 is a long way away. Daily momentum remains weak so I’m watching for falls below the 73.60 level:

Oil continues its correlated declines with equities with both markers down 2%, Brent below $50USD per barrel again while WTI is starting to put pressure on its daily uptrend line. The weekly charts are still pointing to a $60 target on the upside, but that daily trendline needs to hold in the next few days:

Gold continues to come back is coming back and is setting up for another breakout above $1285USD per ounce before the FOMC meeting later this week. As I said previously, this is not yet overbought according to daily momentum but is sure to see a reversion soon on any signs of USD strength:

The data calendar locally will focus on the monthly Westpac consumer confidence figures this morning with nothing much else in Asia. In Europe, its some secondary employment data from the UK while in the US its final figures for industrial production in May, but the big one is the DOE oil inventory report.

Macro Morning