 Hi, good morning, and welcome to today's products and focus now Friday Obviously we talked about that kind of rate cut there in Japan bringing the Nates into negative territory that could be kick-starting a currency war Against China now what we've kind of seen actually is action by or talk in the Eurozone We've seen talk obviously and more like action in in in Japan But another big question mark is what is China going to go ahead and do next so at the very start of January China cut the value of the yuan against of the major other products And that actually caused a lot of the initial market turmoil that we saw at the start of the year from all the equities We began to sell off because there was fears of this big kind of currency war So China tried to stabilize the markets they increased the value of the yuan and things kind of Settled down ever so slightly now you've had Mario dragging coming out basically saying that they'll do whatever it takes No limit as to what they'll do to support the the Eurozone You've had the Bank of Japan going to negative territory And even in America you've had the Fed be a lot more cautious about their rate-high proposals in 2016 So with that in mind and what we've seen in China. What could happen next? So I guess the problem being that with negative rates in Japan You might see a lot of her capital outflow from Japan as people look to find value elsewhere Possibly in the US dollar so a number of traders will be looking at dollar yen with Deutsche Bank itself coming out with the price target of 125 Assuming that people go for the higher the higher year yield of the US dollar at the expense of the Japanese yen Which would devalue the yen even further now the yen and the yuan and the trade partnership between those two countries is Still very very important and there has been a lot of tension there historically In the last you know 12 24 months over a lot of the the islands there in the South China Sea And the question that a number of traders are probably going to have is Bear in mind the political situation between some of these countries and China What is a likely outcome now developing the yuan in response to these these other currency? Devaluations would be an easy option But when China devalue the yuan before you saw incredible Credible capital outflow from China and they actually tried to do this back last August and that caused a little bit of a scare I think it's something like eight hundred million dollars worth of assets went flying out of China And then they panicked and they reversed their decision now China's got a bit of a history right now of making a decision then panicking as soon as things don't go their way so we're arguably at a very very important point for China and they'll be making hopefully very careful considerations as what they're going to do next But that gives you a little bit of a theme We're going to be talking about this theme a lot in the next couple weeks I'm very very sure and regards to the more tactical near-term stuff Friday came with a very very large rally across the equity markets But the question is what's going to happen next because when we look at these charts from a technical perspective We've got a huge candle for Friday But then today there's been no follow-through and there's not really much in the way of macro data still to come You've got some PMI data from market serve out today and tomorrow And then just another few small bit bits and pieces you've got some employment data out on Tuesday as well We'll have a look at that as we go on well Let's start things off by looking at the US 30 and you'll get a bit of an idea as to Friday's rally and Where we stand to go next. Okay, let's go ahead and have a look So as you can see here, this is US 30 83 percent of CMC market clients currently long massive technical breakout We closed at the top end of its range. That's a 2.4 percent increase trading above the 21 period SMA But as you can see there today, absolutely nothing happening If we do get a bit of a reversal, you could be looking at move back down towards a 16 to 76 The next potential Resistance, I think arguably you could take from here. So we're a long long way away from there right now moving on to the UK 100 again Massive increase trading above both moving averages interesting move for the UK 100 Doge formations so far complete and decision 75 percent of CMC markets clients are currently short next potential resistance 63 24 Moving quickly on to Japan 55 again. We were much lower to start the session huge rally there Well, that's over a thousand points Maybe 1500 points from here to here massive move other technicals relatively neutral We're above the 21 period SMA but below the 55 next potential Resistance could be this broken support now acting as potential resistance at 18 5 31 60 percent of CMC markets clients are currently short. It looks to be that 17 6 75 could be a strategic potential support level to be aware of Moving on to dollar yam 91 percent of CMC market clients are currently long probably for all the reasons that we just mentioned at the start of this video This is a huge candle. I've not seen a candle at this for quite some time. Obviously in the downside. We didn't have this one but from the upside Smash through both moving averages We're no man's land right now 123 61 is a potential resistance we're miles away from there right now if we do see any retreat 120 spot 36 could be the potential support West Texas crew does not do a huge amount We're actually looking at from a candle perspective This is a bearish engulfing pattern if I quickly go into five minute interval. It's been moving sideways Sideways moving lower for most of the morning So it gives you a bit of an idea of what to expect 73 percent of CMC market clients are currently short Anticipating potentially a move back down towards 31 spot 50 We should also coincide with that 21 period SMA $35 is a long return potential resistance Then having a quick look at gold Gold's been quite volatile moving lower there on friday only to reverse course towards the end of the session further again this morning 1131 Is a potential support level A broken support now expect attack as potential resistance for gold And the way the world economy is right now with most other economies Kind of cutting their monetary policy And the us might not be doing as many rate hikes as they were expecting gold has some potential here But until we break above 1131 it doesn't really get that majorly exciting 1113 could be potential support 73 percent of CMC markets clients are currently long Fishing up with the currency markets, uh, you can just see a massive reversal there in a neural usd We are looking at one spot 0 8 as potential support a break below that We'd open up the tips of these candles than the tips of these candles And we'd be good to finally get at this symmetrical triangle formation 79 percent of CMC markets clients are currently short And the finish up with gbp usd It's pretty horrible at the moment very volatile session there on friday We were higher we were much lower still a negative start one spot 42 20 very very low value historically for poor old cable Look how far we've come One spot 70 seems like a distant memory at the moment. Unfortunately not so good if you're going off in the holiday With 61 percent of CMC markets clients currently short in regards to economic data As I mentioned, we do have a series of bit of PMI Figures coming out from germany the eurozone the uk and the us including personal income Tomorrow brings employment data from germany and the eurozone Wednesday comes with a housing index PMI again from the eurozone And also your weekly petroleum stats report Thursday factory orders employment data and the bank of england interest rate decision Which will probably be uh, no change, but it's all about a statement for that. Well guys Thank you very much for listening very good. Look at the trading and join me again on tuesday to find out what happened next Thank you very much and goodbye