On March 16, 2026, the APAC market is influenced by ongoing geopolitical tensions in the Middle East, particularly the conflict involving Iran and the Strait of Hormuz. This has led to elevated energy prices, impacting inflation concerns across the US, Europe, and Asia. Asian equities have experienced declines amid these energy risks and tightening rate worries. The Japanese Yen (JPY) is under pressure due to Japan's vulnerability to rising energy costs and intervention risks, while the US dollar remains relatively strong as a safe haven currency.
Key macroeconomic data includes a drop in the University of Michigan Consumer Sentiment Index to 55.5, reflecting consumer concerns over the geopolitical situation and rising gas prices. China's economy shows tentative signs of recovery but remains fragile due to external risks.
The USD/JPY pair is in a significant rally phase, driven by higher US Treasury yields and a diminished expectation of Federal Reserve rate cuts. Japan's heavy reliance on energy imports amid rising energy prices is weakening the Yen. Market participants are closely watching potential interventions by the Bank of Japan (BoJ) as the currency weakens.
Technical indicators for USD/JPY show a strong uptrend with key resistance around 159.45. The pair's movement is primarily influenced by interest rate differentials and energy price dynamics.
| Instrument | Last Close | Signal (9/13 Count) | Technical Bias |
|---|---|---|---|
| USD/JPY | ~159.00 (approximate level) | Sell signal on short-term counts | Strong uptrend, mixed short-term signals |
| JP225 (Nikkei 225) | 54,388 | Sell | Mostly short-term bearish indicators |
| Instrument | Last Close | 9/13 Count Signal | Technical Bias Summary |
|---|---|---|---|
| JP225_USD (Nikkei 225) | 54,388 | Sell | Short-term moving averages mostly bearish; longer-term averages mixed; RSI neutral |
| AUD/USD | ~0.6956 | Buy | Strong bullish short-term indicators; positive trader sentiment |
| AUD/SGD | ~0.8861 | Neutral | Mixed signals; bullish and bearish seasonality; neutral trader sentiment |
| NZD/SGD | 0.74743 | Sell | Bearish across most technical indicators |
| EPAC (APAC ETF or index proxy) | 35.87 | Buy | Mostly bearish moving averages but some bullish momentum indicators |
Market sentiment in APAC is cautious due to geopolitical risks and energy price volatility. The Japanese Yen remains under pressure, with intervention risks rising as USD/JPY rallies. Equities face headwinds from inflation fears and energy supply concerns. Traders are advised to monitor key technical levels and geopolitical developments closely, especially around the Strait of Hormuz and central bank policy announcements in the US, Japan, and Australia.