USD/JPY bulls tiring ahead of critical recovery target?

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USD/JPY has been in recovery in the opening of Tokyo fro the downside that kicked off the day in early Asia when the Yen rallied amidst risk aversion.

The weekend news was the G20, and while the outcome suggested that markets are making a worse situation of the global economy than what it really is, there remain big concerns over the EU and subsequent ramifications for Global markets. Mervyn King, former BOE Governor, was reported in the Telegraph from his new book to have said that the eurozone is doomed to fail and will lurch from crisis to crisis unless it is broken up.

We have had a series of data for Japan in the open for the week that could be ' evidence of slowing Japanese economy'. While, for the week ahead, the main focus will be on China's PMIs and the US nonfarm payrolls.

while the economy is expected to add a relatively modest 168K jobs in February with the unemployment rate that should rise modestly, climbing to 5.0% from 4.9%. "The overall tone of this report should be weak, reflecting the slowing in underlying US economic momentum," explained analysts at TD Securities.

USD/JPY levels

USD/JPY's key downside target is the 10 dma at 113.19 today in the near term while a continued recovery targets 114.80 and within the vicinity of the 15th Feb high. Spot trades above the pivot of 113.50 on the bid with R1 at 114.69, R2 at 114.98 and R3 at 115.27. "According to the 4 hours chart however, the upside seems more constructive, with the price above its 100 SMA for the first time since early February, and the technical indicators nearing overbought territory, in line with further short term gains," explained Valeria Bednarik, chief analyst at FXStreet, while the major targets the key target of the recovery at aforementioned 114.80 level.

Source: FXstreet

Oil Trades Near $33 as U.S. Explorers Idle More Rigs Amid Glut

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Oil traded near $33 a barrel as U.S. drillers cut the number of active rigs to the lowest level in more than six years amid a global glut.

Futures gained 0.4 percent, trimming a fourth monthly drop. Rigs targeting oil fell by 13 to 400, the lowest since December 2009, according to Baker Hughes Inc. That is the 10th week of declines. Hedge funds and other speculators increased net-long positions in West Texas Intermediate futures and options by 14 percent to the highest since November in the week ended Feb. 23, according to U.S. Commodity Futures Trading Commission data.

WTI for April delivery was at $32.91 a barrel on the New York Mercantile Exchange, up 13 cents, at 9:05 a.m. Hong Kong time. The contract lost 29 cents to close at $32.78 on Friday. Total volume traded was about 22 percent below the 100-day average. Prices rose 11 percent last week, the most since August, and are down 2.2 percent in February.

Source: Bloomberg      

Asian Stocks Rise as Japanese Equities Gain After G-20 Meeting

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Asian stocks rose as Tokyo shares rallied for a third day and Group of 20 leaders pledged to use fiscal policy to strengthen growth and job creation.

The MSCI Asia Pacific Index gained 0.4 percent to 120.08 as of 9:09 a.m. in Tokyo.  Investors are looking for clues as to the strength of the global economy after finance chiefs from the world’s top economies committed their governments over the weekend to doing more to boost global growth amid mounting concerns over the potency of monetary policy. Japan’s most recent round of monetary easing was a focus of the meeting, amid concern it could spur a round of competitive currency devaluations, said Eurogroup chief Jeroen Dijsselbloem.

The G-20 members reaffirmed they will refrain from competitive devaluations, and -- in new language -- agreed to consult closely on currencies. Chinese manufacturing data due Tuesday and the monthly U.S. jobs report Friday are just two of a string of closely watched economic data points scheduled to be released this week.

Asia’s benchmark index is down 9 percent in 2016, compared with a 4.7 percent slide in the S&P 500. Slumping commodities prices, a surprise devaluation of the yuan and a move into negative rates from the BOJ roiled equity markets at a time the Federal Reserve is considering how fast it can lift U.S. interest rates without choking off the economic recovery.

Source: Bloomberg

Japanese Stocks Rise Third Day as Weaker Yen Boosts Exporters

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Japanese stocks rose for a third day after a weaker yen boosted the earnings outlook for exporters and as investors digested the Group of 20’s statement on the global outlook.

The Topix index rose 1 percent to 1,324.30 as of 9:04 a.m. in Tokyo, with all but four of its 33 industry groups climbing. The Nikkei 225 Stock Average jumped 1 percent to 16,343.55. The yen traded at 113.74 per dollar, after dropping 0.9 percent on Friday.

Policy makers from Japan and China have indicated the need for more fiscal stimulus to combat a global slowdown.

E-mini futures on the Standard & Poor’s 500 Index slipped 0.1 percent after the underlying equity gauge closed 0.2 percent lower on Friday.

Data released in Tokyo Monday showed industrial production rose 3.7 percent in January from December, though fell 3.8 percent from a year earlier. Retail sales dropped 1.1 percent from December.

Source: Bloomberg

Hong Kong shares up 2 pct as China rebounds, G20 meeting eyed (Review)

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Hong Kong shares rose more than 2 percent on Friday, buoyed by a rebound in mainland China markets that prompted investors to hunt for bargains after losses in the previous session.

The Hang Seng index surged 2.5 percent to 19,364.15 points, its best day in nearly two weeks.

For the week, it gained 0.4 percent despite a loss of more than 3 percent for China's main benchmark indexes.

The China Enterprises Index ended up 2.1 percent in the biggest daily gain in more than a week at 8,034.30 points. The index was down 1 percent for the week.

Investors were eyeing policy messages from G20 finance chiefs and central bankers meeting on Friday and Saturday in Shanghai. Current market turmoil and a global economic slowdown expected to be key topics of discussion.