USD/JPY, EUR/CHF, NASDAQ 100 and NIKKEI 225 Forecasts – Multiple Markets to Watch Today

USD/JPY Technical Analysis

The first chart I’m watching is the US dollar against the Japanese yen. I love trading this pair, I love the interest rate differential and the fact that we have fallen down to roughly 155.5 yen and bounced already suggests to me that I’ll be looking to buy dips during the trading session for short-term gains.

I don’t know that I’ll hold this over the weekend, other than my core position, mainly due to the headline risk of tensions between the Americans and the Iranians. The last thing you want to do is get married to a huge position and then wake up 300 pips down on Monday morning. I don’t think that’s a huge fear, but it is one thing to keep in the back of your mind because, quite frankly, if the weekend is quiet and nothing really happens, you can just jump back into that position. I do think we’re trying to grind our way back to 160 yen.

EUR/CHF Technical Analysis

The next chart is the euro against the Swiss franc. This is a pair I’m watching very closely, not necessarily to trade right away, but I do know that the Swiss have been barking about the idea of a strong Swiss franc being an issue.

This is the epicenter of where intervention will happen. So, because of this, I’m actually looking for the Swiss to get involved and I’m willing to jump on that train. I don’t have any interest in shorting this pair, although if it weren’t for that, yes, it would be a breakdown I’d be shorting right away.

This is not a game I like playing because the Swiss National Bank is known to intervene and has blown up several trading accounts in the past by stepping away from the market, stepping into the market, everything else. You will be hard pressed to find a central bank that’s more active than the Swiss, so just keep an eye on this. Remember, 85% of Swiss exports end up in the European Union, they will lose their sense of humor about this.

NASDAQ 100 Technical Analysis

The next market I’m watching is the Nasdaq 100. The only question I have here is whether or not we will recapture 25,000. If we do, I think that’s a good sign, I probably want to get long at that point.

It does look like a lot of fear out there, but again, it really doesn’t matter what the Europeans or the Asians do, what matters is what happens during the New York trading session. If we can break above the 25,000 level, I think this is a market that could go back towards the 25,400 area. If we can, then I am a buyer.

NIKKEI 225 Technical Analysis

Finally, the Nikkei 225. This is an index that’s been on fire as of late. It did give back some gains early in the day. My question is, can we recapture 58,800 Japanese yen?

If we can, then I am a buyer. We should go looking to the 60,000-yen level again and eventually break above there. I have no interest in shorting this market, I’m not even looking at negative setups. Again, 58,800 is where I am interested in buying again.