USD/JPY is trading at 136.869, 0.03% down since previous day close. Like other currencies, the YEN, too weakened against the stronger USD as chances of higher interest rate hikes may be expected in future Fed meetings. Also, the better U.S ADP figures further elevated upside in USD & downside in other currencies. The outcome of key U.S NFP data on Friday will remain significant for overall market instruments. The Japan’s Final GDP rate changed by 0.0% versus previous change of 0.2% & the Money Stock grew by 2.6% lower than expectation 2.8%. As seen in the chart, the pair showed a pullback till long term SMA (200) which acts as major resistance level & hence, the cautious trading may be recommended in USD/JPY.

CHNIND is trading at 6740.3, 0.06% down since previous close. The Chinese shares seems to be trading flat to lower side post release of inflation data wherein the CPI rate grew by 1.0% lower than expectation 1.9% while the PPI rate fell by 1.4% from -0.8% in the previous month. These may turn up to be positive for CHNIND in later half of the session. On global front, the fear looms over chances of higher interest rate hikes in upcoming FOMC meets in order to curtail inflation rate as hinted in Fed Powell’s testimonial speech. This weakened the equity markets in last two sessions. As seen in the chart, the CHNIND is hovering near Fibo level 38.2 which acts as major support level & shows the chances of reversal if sustained or a breakdown if breached.

WTI Oil is trading at $76.59, 0.16% down since previous day close. The Oil prices extended its losses in early trade on Thursday despite bearish U.S EIA estimates which showed a fall in Oil inventory level by 1.7 mbpd against the expected rise of 1.3 mbpd. Majorly, the strong USD as U.S Fed Chair hinted for aggressive rate hikes in the near future in order to curtail down inflation rate led selling pressure in dollar denominated commodities like WTI Oil. The recent U.S American Petroleum Institute (API) report showed a drop-down in Oil stocks level by 3.83 mbpd against the expected fall of 0.30 mbpd. As seen in the chart, the Oil is within the sideways channel pattern which shows a make or break momentum on short term basis.