European Open: USD/JPY bulls return in style

Asian Indices:

• Australia's ASX 200 index fell by -94.7 points (-1.3%) and currently trades at 7,212.30
• Japan's Nikkei 225 index has fallen by -40.69 points (-0.15%) and currently trades at 27,412.79
• Hong Kong's Hang Seng index has fallen by -151.83 points (-0.76%) and currently trades at 19,858.21
• China's A50 Index has risen by 5.54 points (0.04%) and currently trades at 13,361.17

UK and Europe:

• UK's FTSE 100 futures are currently up 29 points (0.37%), the cash market is currently estimated to open at 7,907.66
• Euro STOXX 50 futures are currently up 6 points (0.14%), the cash market is currently estimated to open at 4,184.82
• Germany's DAX futures are currently down -3 points (-0.02%), the cash market is currently estimated to open at 15,206.74

US Futures:

• DJI futures are currently up 20 points (0.06%)
• S&P 500 futures are currently up 28.25 points (0.24%)
• Nasdaq 100 futures are currently up 5.5 points (0.14%)

• BOE member Ben Broadbent speaks at 09:00 GMT: Opening remarks at the BEAR Research Conference: New Digital Technologies and the Future Financial Landscape
• Another hot US inflation print weighed on sentiment on Friday, sending al three major US benchmarks lower
• Predictably, that has weighed on gold prices which now trade around $1803, just shy of our $1800 target – a level I suspect will hold as support
• US yields continue to climb on growing expectations of a more hawkish Fed, with the 2-year closing at its highest level since 2007 on Friday
• Oil prices are little changed, which are supported lower supply from Russia’s reduced output, versus high interest rates and expected lower demand
• There’s no major economic data scheduled for today, so perhaps we’re in for a quiet one

USD/JPY 1-hour chart:

The combination of a new dove at the helm of BOJ and a strong US inflation report saw USD/JPY print a convincing bullish engulfing day. Prices have since pulled back, and now in a period of consolidation around last week’s highs. The game plan from here is simple; any pullback to the 135.74 area / weekly picot point will pique our bullish interest, for a move to the 137.50 area.

Economic events up next (Times in GMT)