Archived IMT (2010.03.31)

Dow and S&P500 consolidate over the last 7 sessions with stochastics increasingly bearish (triple top in RSI, negative crossover in MACD). Although Nikkei was the only rallying index in Asian to have rallied on Wednesday, Thursday could be an occasion for a selloff, which could be extended by further yen strength as tonights Tankan survey is released (see calendar for Tankan). AUDJPY now testing key 61.8% retracement at 85.70s, while oil closes above 83, therefore closely watch whether these gains are sustainable into the rest of the week. Remember that on Jan 11 crude oil hit a $83.95 before retreating towards 78 in that same week. Will a disappointing NFP erode risk trades in FX to the benefit of USD and JPY?