Morning Note: Palantir Hits New Highs, Yen Strengthens, and U.S. NFP Data Awaited

Will Palantir Continue Breaking New High?

Palantir reported decent Q4 2024 results on Monday, which were in line with investors' expectations, surging its share price. EBIT profit slightly exceeded the target of $1.13 billion. Its four software platforms, Gotham, Foundry, Apollo, and AI, had netted hundreds of millions as businesses and governments sought their capabilities for critical decision-making.

(PLTR Daily Share Price, Source: Trading View)

From a technical analysis perspective, the overall trend of PLTR's share price remains bullish, as indicated by the higher highs and higher lows. Recently, it has broken through the resistance zone with a gap-up and significant bullish movement, reaching a new all-time high. Moving forward, it’s essential to observe whether the price will undergo a bullish correction and retrace to fill the gap.

Japanese Yen Strengthens on BOJ’s Hawkish Stance

On Thursday, BOJ board member Naoki Tamura marked the adjustment of policy interest at a level higher than the 1% mark some time in the second half of fiscal 2025. In addition, household spending in Japan rose by 2.7% year-on-year, marking the first increase in five months and well above the previously expected 0.2%.

Moreover, investors remain torn by early readings from the Trump administration. While tariffs on Mexico and Canada had been postponed, a new 10% tax was imposed on products imported from China. Federal Reserve members are eyeing these developments in evaluating monetary policy.

(USD/JPY Daily Price Chart, Source: Trading View)

From a technical analysis perspective, the recent price action has broken through the ascending channel downwards, retested it, and faced rejection. Additionally, it has breached the support zone with strong bearish momentum. This solid bearish structure may lead the price to continue falling, potentially retesting the next support level below.

Investors Await U.S. NFP Data

U.S. nonfarm payrolls increased by 256,000 in December 2024 against expectations of 160,000, contributing much of the growth due to strong gains in healthcare, government, and social assistance. In January 2025, expectations are projected to slow, with job gains ranging from 150,000 to 170,000 and the unemployment rate holding steady at 4.1%.

The labour market's strength continues to fuel economic growth, justifying the Federal Reserve's decision to continue cutting interest rates as the policymakers take stock of the effects of all fiscal, trade and immigration policies from President Donald Trump. Moreover, a recent spike in jobless claims suggests a softening in labour market conditions.

(U.S Dollar Index Daily Price Chart, Source: Trading View)

From a technical analysis perspective, the previous price action broke through the ascending channel and retested it but was rejected at the previous resistance zone, forming a double-top structure. This bearish momentum pushed the price downward and is currently retesting the previous support zone. If the price fails to hold this support, it is highly likely to continue downward and retest the lower support zone.

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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.