EURJPY TECHS: Approaching Key Support
- RES 4: 162.70 High Jan 28
- RES 3: 161.60 50-day EMA
- RES 2: 160.93 20-day EMA
- RES 1: 158.86 High Feb 6
- PRICE: 156.14 @ 16:50 GMT Feb 7
- SUP 1: 155.87 Intraday low
- SUP 2: 155.16 3.0% 10-dma envelope
- SUP 3: 155.15 Low Sep 16 ‘24
- SUP 4: 154.42 Low Aug 5 ‘24 and key medium-term support
A bear cycle in EURJPY remains present and this week’s move down reinforces current conditions. The cross has cleared 158.24, the 76.4% retracement of the Dec 3 - 30 bull cycle as well as 156.18, the Dec 3 low and key support. Initial firm resistance to watch, and a pivot level, is 161.60, the 50-day EMA. The short-term trend is oversold, gains would allow this condition to unwind.
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US STOCKS: Late Equities Roundup: Inside Range Ahead Thursday Close
- Stocks are trading near steady to mixed late Wednesday, off session lows with the DJIA outperforming. Risk sentiment cooled slightly following the December FOMC minutes release, trading accounts mindful of Thursday close for equities in observance of former President Carter's funeral ceremony.
- Currently, the DJIA trades up 9.31 points (0.02%) at 42538.47, S&P E-Minis down 4.25 points (-0.07%) at 5950.75, Nasdaq down 31.5 points (-0.2%) at 19459.07.
- Health Care led gainers for the second day running with Boston Scientific +4.49%, GE HealthCare +3.89% and Medtronic gained 3.27%. Industrials followed in the second half: Howmet Aerospace +2.53%, Transdigm Group +2.17%, Lennox International +2.03%.
- Conversely, Communication Services and Utility sectors continued to underperform in late trade, interactive media and entertainment shares weighed on the former: Warner Bros -3.57%, Paramount -1.38%, Match Group -1.48%. Independent power providers weighed on the Utility sector with AES Corp -5.29%, Vistra -2.21%.
EURGBP TECHS: Breaches Resistance
- RES 4: 0.8448 High Oct 31 and reversal trigger
- RES 3: 0.8400 High Nov 5
- RES 2: 0.8376 High Nov 19 and a bull trigger
- RES 1: 0.8352 High Jan 8
- PRICE: 0.8344 @ 19:56 GMT Jan 8
- SUP 1: 0.8284 Low Jan 8
- SUP 2: 0.8263/23 Low Dec 31 / 19
- SUP 3: 0.8203 Low Mar 7 2022 and a major support
- SUP 4: 0.8188 1.00 proj of the Oct 31 - Nov 11 - 19 price swing
EURGBP traded sharply higher Wednesday and in the process breached resistance at the 50-day EMA, at 0.8311. The cross is also through the December highs. This undermines the recent bearish theme and suggests scope for a stronger short-term recovery. A continuation of the bull leg would expose 0.8376, the Nov 19 high and the next important resistance. Initial support lies at 0.8284, the Jan 8 low.
GBPUSD TECHS: Bear Cycle Extension
- RES 4: 1.2672 50-day EMA
- RES 3: 1.2607 High Dec 30
- RES 2: 1.2550/2576 20-day EMA / High Jan 7
- RES 1: 1.2476 Low Dec 20
- PRICE: 1.2356 @ 19:47 GMT Jan 8
- SUP 1: 1.2321/2300 Low Jan 7 / Low Apr 22 ‘24 and a key support
- SUP 2: 1.2226 0.618 proj of the Sep 26 - Nov 22 - Dec 6 price swing
- SUP 3: 1.2187 Low Nov 10 2023
- SUP 4: 1.2087 0.764 proj of the Sep 26 - Nov 22 - Dec 6 price swing
The trend condition in GBPUSD remains bearish and Wednesday’s sharp sell-off reinforces the bear trend. The move down has also confirmed a resumption of the bear leg and an extension of the price sequence of lower lows and lower highs. Sights are on 1.2300 next, a break of this level would open 1.2226, a Fibonacci projection. Initial firm trend resistance has been defined at 1.2576, the Jan 7 high.
