US2Y Technical Analysis
The 2-year yield: We’re going to have to keep watching the short end of the curve in the United States, as well as the 10-year yield in the middle. They are both still very stout, and that has a major influence on risk appetite, although it does seem like things are cooling off a little bit early here on Thursday.
Copper Technical Analysis
The copper market is shooting straight up in the air, and I like that. This is a resumption of the trend we have been in. Short-term pullbacks, for me, will be thought of as buying opportunities. With the Federal Reserve now out of the way, traders can start to focus on things like lack of supply. Ultimately, short-term pullbacks, I think, are the way to go. I like anything close to the 50-day EMA, but quite frankly, I’m a long-term bull of copper and have no concerns whatsoever about buying it.
DAX Technical Analysis
The DAX in Germany is on my radar today. I’m buying short-term dips, might do so shortly, and I do think eventually we start to try to resume the overall uptrend. The ECB is likely to hike again; we know that now. Once you know the components, that helps. If energy cools off a bit further, that only helps strengthen the case for Germany and its industrial base to really take off due to spending coming out of the federal budget, infrastructure, military, that type of thing.
USD/JPY Technical Analysis
Finally, the dollar against the Japanese yen: I’m watching this. I don’t know that I’m going to really trade it for the first time in ages. I’m actually out of this position, but I’m going to be watching the ¥155 level specifically late in this day, perhaps rolling over into Friday when we get that Bank of Japan statement and decision. They are expected to raise rates. I’m pretty sure that’s baked into the cake here, but let’s see what they have to say.
I think we can say this about all yen-denominated pairs: they are currently in a state of wait-and-see, and I think that is probably the most important market to watch at the moment. Let’s see if it holds and starts to bounce again. If that’s the case, I’m jumping right back in.