Coming after two days of stellar gains, US equity markets took a breather overnight as growth stocks underperformed slightly ahead of big tech earnings releases.


Singapore’s inflation rate will also be released later today, with the core aspect still giving little credence to peaking. Readings over the past two months have hovered around 5.1%, just a touch below the high of 5.3%, possibly pointing to some pricing. A print of 5% is expected for December. A further upside surprise could be lurking to create a further downtrend for the USD/SGD, which is consolidating at a three-year low at the 1,310 level.

On the watchlist: USD/JPY back at major resistance convergence

After the wild swing in the aftermath of the Bank of Japan (BoJ) meeting on January 18, the USD/JPY has begun retesting a key confluence of resistance at the 130.80 level. Any recovery in US 10-year yields over the past week may well be the main source of strength for the upside here. That being said, an upper channel trendline resistance, the 20-day moving average (MA), and a horizontal support-transformed resistance are technical factors to put sellers at the 130.80 level, with any failure to overcome the level leading to the downside propensity remains intact and possibly triggers the next step to the 126.84 level. On the contrary, any successful attempt to get past the level can leave the 134.40 level on hold.

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