Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Markets to watch: AUD/JPY, Tesla and WTI

Investors are piling back into risk despite ongoing risks and signals of a possible US growth slowdown.

Source: Bloomberg

Risk appetite remains strong despite bond market warnings

Global equities move higher, even as the bond market warns that the US economy is heading for a precipitous slowdown. A turnaround in market sentiment has seen momentum in indices reverse, with a recovery in tech stocks underpinning the rebound on Wall Street. Despite this, the US yield curve is fast approaching inversion, suggesting that amidst inflation, monetary policy tightening, the war in Ukraine, and China’s latest lockdowns, economic growth may be heading for a major slowdown.

Here we look at four key markets to watch, as investors pile back into risk in the face of persistent economic and financial risks.

Top three markets to watch

1. WTI Crude

WTI Crude Source: TradingView

The progress of peace talks (however glacial) and lockdowns in China has given rise to both supply and demand headwinds for crude. Price momentum is slipping to the downside on the dailies, with the price falling below the 20-day MA and the daily RSI turning lower and threatening a push below the 50-level. A confluence of support is emerging around the $US100 mark right now, which includes trendline support. A break below that level could open a rest of $US93.40/50. Resistance might be found around $US116-117.

2. Tesla

Tesla chart Source: TradingView

Tesla revealed in a regulatory filing – and backed this up via Tweet – that the company is looking at a stock split thus sending its stock price surging. While there’s no rational basis for such a move – the split creates no additional value – the perception that a lower price for the stock will attract greater buyers sparked the rally. Tesla shares broke resistance at roughly $US900 and $US1000 last night, with momentum soaring as the daily RSI hit technically overbought levels. The next level of resistance looks to be just above $US1100 now and support might be found at the previous resistance at $US1000.

AUD/JPY

AUD/JPY chart Source: TradingView

The trend for the AUD/JPY ultimately looks bullish. Commodity prices are flying, while yield spreads between AGBs and JGBs are widening, as interest traders price in 6 rate hikes from the RBA in 2022. The hike is ultimately fuelled by expectations of pre-election cash hand-outs from the government in this year’s budget.

Despite this, from a technical standpoint, the AUD/JPY looks ready for a pullback with the daily RSI historically overbought and turning lower. Key support levels might include the 20-day and previous resistance at ~86.00.

Follow Kyle Rodda on Twitter @KyleR_IG


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.