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Valentines Day Pick For BoJ Chief Could Prove To Be A Heartbreaker For Yen Bears

Asian equities are mostly lower overnight as declines in US equities persisted following reports suggesting Fed comments that US interest rates have further to rise. Chinese inflation data for January was mixed as annual producer price inflation fell to -0.8% in January but consumer price inflation rose to 2.1% from 1.8% in December. The Japanese government has confirmed that it will announce its nominee for the next Bank of Japan Governor on 14th February, market chatter that the BoJ pick is believed to be the more hawkish ex-board member Ueda after the favorite for the nomination refused to accept the role, has led to strengthening in the Yen overnight.

In the US, consumer confidence has been rebounding after huge declines witnessed last year. The retreat in gas prices stateside has helped buffer sentiment, however, today’s University of Michigan consumer sentiment survey is thought to show another round of softness. The latest sentiment on inflationary expectations will also be eyed with the recent rebound in gas prices a concern.
 

FX Options Expiration New York Cut

• EURGBP .8800(425mln) .9390(580mln)
   

Overnight News of Note

• Asia Stocks Head For Second Weekly Loss As Fed Rate Worries Flare
• Japan Govt To Present Next BoJ Governor Nominee On Feb 14
• RBA Raises Inflation, Wages Forecasts, Sees Further Rate Hikes
• China Factory Deflation Deepens, Consumer Prices Rise In January
• Japan's Wholesale Inflation Stays Elevated, Keeps BoJ Under Pressure
• BoJ Kuroda: Will Keep Easing As Long As Needed For Price Goal
• BoJs Amamiya: See No Need Now To Make YCC More Flexible
• Japan’s Suzuki: Must Discuss Joint Accord With New BoJ Governor
• Fed's Foot 'Unequivocally' On Brake, Sensible To Move Slower, Barkin Says
• Bank Of England Officials Split Over Future Path For Rates
• Dollar Defensive As Investors Remain Cautious Ahead Of Inflation Data
• Treasury Yield-Curve Inversion Reaches Deepest Level Since 1980s
• PBoC 3-Day Cash Injection Hits 1 Trillion Yuan To Ease Squeeze
• BoJ To Offer 5yr Loans To Banks On Feb. 14 To Help Cap Yields
• Oil Trims Weekly Gain As Slowdown Concerns Counter China Demand
• Goldman Cuts Oil Forecasts On Softer 2023 Demand-Supply Balance
• PayPal Says Volume Growth Slowed; CEO Schulman To Retire

(Sourced from Bloomberg, Reuters and other reliable financial news outlets)
 

Technical & Trade Views

SP500 Bias: Intraday Bullish Above Bearish Below 4050

• Primary support is 3990
• Primary objective is 4384
• Below 4040 opens 4000
• 20 Day VWAP bullish, 5 Day VWAP bearish

(Click on image to enlarge)

EURUSD Bias: Intraday Bullish Above Bearish below 1.0810

• Primary resistance is 1.0950
• Primary objective is 1.06
• Below 1.0580 opens 1.0500
• 20 Day VWAP bearish, 5 Day VWAP bearish

(Click on image to enlarge)

GBPUSD Bias: Intraday Bullish Above Bearish below 1.21

• Primary resistance  is 1.21
• Primary objective 1.1840
• Above 1.2165 opens 1.2260
• 20 Day VWAP bearish, 5 Day VWAP bearish

(Click on image to enlarge)

USDJPY Bias: Intraday Bullish above Bearish Below 131

• Primary support  is 130
• Primary objective is 134.70
• Below 130.80 opens 130.11
• 20 Day VWAP bullish, 5 Day VWAP bullish

(Click on image to enlarge)

AUDUSD Bias: Intraday Bullish Above Bearish below .7050

• Primary resistance is .7050
• Primary objective is .6750
• Above .7150 opens .7250
• 20 Day VWAP bearish, 5 DayVWAP bullish 

(Click on image to enlarge)

BTCUSD Intraday Bias: Bullish Above Bearish below 21500

• Primary support 21200
• Primary objective is 25000
• Below 20300 opens 19500
• 20 Day VWAP bullish, 5 Day VWAP bearish

(Click on image to enlarge)

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