A fair bit of blue on the heat map leans towards the indecisive nature of the markets while the trade concerns remain in focus. Stock markets do look increasingly heavy though and selling rallies in the US indices, trading from the short side still seems to be the way to go. The same may apply to the ASX after today’s reversal from the trend highs.
In the currency markets, the Euro still looks positive both against the US$ and also on the crosses, as does US$Jpy in the short term, so trading the cross (EurJpy) from the long side may be a plan. Further out, be careful of being short Jpy. If the trade war does materialise, then the Jpy (and Chf) will surge, as safe haven demand will take off – Right now, the longer term Jpy charts are showing little directional bias either way.