Asian Equities Markets Were Mixed Today
Asian markets were mixed in today’s trading. The Hang Seng Index is trading lower by over 804.2 points or 2.86% at 27,150. This is the first day since the start of this week that Hong Kong markets opened. Therefore, this is the first time that investors were able to absorb the news about the coronavirus spreading.
Meanwhile, the Nikkei 225 closed higher by 163.0 points or 0.71% at 23,279.4. This was the first time that Japan stocks closed in the green this week.
Australian CPI Figures Top Forecast
There were two reports released earlier today. Australia’s Q4 GDP report printed better than expected at 0.7% versus the consensus at 0.6%. Meanwhile, the trimmed CPI came in as estimated at 0.4%. Consequently, AUDUSD rose higher following the news. Then in Japan, the consumer confidence report for January missed forecast at 39.1. The estimate was at 39.6. However, the reaction of JPY was muted following its release.
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GBPJPY Outlook
On the daily time frame, we can see that GBPJPY is testing support at a long-term trend line. When you connect the lows of September 3 and October 9, you will see that a doji has materialized at the trend line support. In forex trading, this candlestick characterized by a small body is considered as a neutral candlestick signal. However, because it happened at a support level, the indecision candle could suggest that the recent sell of on GBPJPY could be running out of steam. A bullish candlestick closing above the high of yesterday’s low at 142.42 would confirm this assumption. GBPJPY may soon then begin its rally to its December highs at 147.80.
On the other hand, a bearish close below yesterday’s low at 141.43 could indicate that sellers are still in control. GBPJPY could then fall further to support around the 100 SMA and 200 SMA at 138.60.
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