David Fuller's view Market trends represent reality in terms of supply and demand; the rest is noise.

USD/JPY (weekly & daily) resumed its uptrend on Friday following a 5-week consolidation. It may pause briefly near current levels following recent strong gains but a close beneath the mid-point danger line (MDL) near ¥93 would be required to indicate an upside failure. Meanwhile, the next psychological target is ¥100.

Japan's Nikkei 225 Index (weekly & daily) and Topix 2nd Section Indices (weekly & daily) are temporarily overextended once again and therefore susceptible to small reactions and consolidations. Moreover, TSE2 is back at psychological resistance near 3000. However, in terms of the potentially lengthy medium-term outlook, the sudden introduction of largely unexpected reflationary measures last November has surprised investors, both international and domestic. Both were serially underweight Japanese equities in a complete reversal of their policies of the 1980s. Consequently, we are witnessing mostly one-way traffic back into Japanese equities. It could have a long way to go given the depressed starting points, best seen on historic charts for NKY and TSE2.

Euro STOXX 50 (weekly & daily) found support near the upper portion of its mid-September through December 2012 range and has rallied to within reach of its late-January highs. This maintains the overall consistency of the recovery trend and I would give the upside the benefit of the doubt, provided the late-February low near 2560 holds. The next important test of previous and psychological resistance will occur near 3000. However, Euro STOXX Bank (weekly & daily) is currently lagging despite an upward dynamic on Friday from just above the 200-day MA. Also, last month's reaction was the steepest since the July low. Consequently, it needs to remain above 110 and push back to and eventually through its January highs, to avoid a potentially important negative divergence with SX5E.

Australia's S&P ASX200 (weekly & daily) currently appears to be completing a consolidation above the psychological 5000 level and also prior recovery peaks following the 2009 low. A decline back beneath 5000 would be necessary to check upward scope and reaffirm resistance in this region.