How to keep your finger on the pulse of the markets-Photo from pixabay.com
We believe that the start of a retracement is unlikely at the moment. Our algorithms, except if anything changes today with the inflation data, project the continuation of the bullish trend. Where are the markets headed? In our opinion still on the rise. In the last paragraph of this article we indicate which levels must not be broken downwards. This is to avoid that, according to our algorithms, a bearish phase could begin.
In the meantime, however, the probability increases that between June and July prices could go below the lows recorded in April. It will be like this? For the moment our predictive systems are starting to bet on it.
Where is the dollar-yen exchange rate headed?
Bank of Japan (BoJ) Governor Kazuo Ueda gave a speech and the summary of the BoJ’s April 25-26 opinions was published to change the markets’ understanding of monetary policy. Both indicate that the recent weakening of the yen could increase core inflation. Analysts believe the BoJ is unlikely to stop the yen’s weakness and attribute the main cause to the difference in rates between the United States and Japan.
The BoJ is not expected to raise rates in June but may reduce purchases of Japanese government bonds. Two rate increases are assumed by 2024, but UBS believes a single increase is more likely. The currency market remained little moved, with investors awaiting new US CPI data to gauge Federal Reserve policy. Economists expect a modest increase in US core CPI in April.
Study of the graph
In the last few days the share has changed in the 156.40 area. Since the beginning of the year it has marked the minimum at 140.80 and the maximum at 160.23. The trend set by our algorithms on the daily and weekly time frame is bullish and therefore a continuation of the ongoing movement is projected. First objective in area 160.23. This bullish view will be undermined by a return of prices below 151.86.
Where are the markets headed? How to keep an eye on the short-term situation
The trading session on May 14th closed at the following prices:
Dax Future
18,888
Eurostoxx Futures
5,073
Ftse Mib Future
34,377
S&P500
5,222.68.
The trend, as read by our algorithms, is bullish: new declines instead, with weekly closings lower than the following price levels
Dax Future
18.161
Eurostoxx Futures
4,900
Ftse Mib Future
33,225
S&P500
5.142.
More inflation data will be released today. How will they be read by the markets?
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