Market sentiment took a big turn overnight with strong rally in US indexes. Nikkei follows in Asia and reclaimed 30k handle, but other Asian markets are soft. Yen dropped notably following return of risk appetite while Dollar also weakened. On the other hand, commodity currencies rebounded notably. Yen is now the worst performing one for the week, followed by Sterling. Swiss Franc is the strongest followed by Canadian. But the picture could change before weekly close.

Technically, a focus is now on whether Yen’s selloff would extend further immediately. In particular, break of 110.44 resistance in USD/JPY will be a strong sign of bullish range breakout. Further break of 110.79 resistance would pave the way to retest 111.65 high. Such development, if happens, could be accompanied by break of 130.73 resistance in EUR/JPY, and 152.85 resistance in GBP/JPY.

In Asia, at the time of writing, Nikkei is up 2.01%. Hong Kong HSI is down -0.03%. China Shanghai SSE is down -0.07%. Singapore Strait Times is down -0.12%. Japan 10-year JGB yield is up 0.0142 at 0.050. Overnight, DOW rose 1.48%. S&P 500 rose 1.21%. NASDAQ rose 1.04%. 10-year yield rose 0.074 to 1.410.