USDJPY TECHS: Bear Threat Remains Present

• MNI: SWEDEN FLASH Q2 GDP +0.9% Y/Y

• RES 4: 177.08 2.000 proj of the Feb 28 - Mar 18 - Apr 7 price swing 
• RES 3: 175.43 High Jul 11 ‘24 and a key medium-term resistance
• RES 2: 174.86 1.764 proj of the Feb 28 - Mar 18 - Apr 7 price swing
• RES 1: 173.97 High Jul 27 and the bull trigger 
• PRICE: 171.66 @ 06:55 BST Jul 29
• SUP 1: 171.53 20-day EMA
• SUP 2: 170.81 Low Jul 11
• SUP 3: 169.77 Low Jul 7  
• SUP 4: 168.89 50-day EMA   

The bullish trend condition in EURJPY remains intact, and for now a pullback is considered corrective. Initial support to watch lies at 171.53, the 20-day EMA. A clear breach of this average would signal scope for a deeper correction and highlight potential for a move towards the 50-day EMA, at 168.89. Moving average studies remain in a bull-mode position highlighting an uptrend. A break of Monday's 173.97 high would resume the bull cycle.

Germany and Italy look to hold auctions today and tomorrow respectively while Belgium is due to hold an ORI and already held a conventional auction. We pencil in issuance of E17.0bln in the week, up from last week’s E10.8bln.

For the full MNI EGB Issuance, Redemption and Cash Flow Matrix with a recap of issuance so far this week and a look ahead to the next two weeks of issuance, click here.

• Germany will come to the market today to look to sell E4.5bln of the 2.20% Oct-30 Bobl (ISIN: DE000BU25059).
• Italy tomorrow will hold a 5/10-year BTP /CCTeu auction, selling E1.0-1.5bln of the 1.35% Apr-30 BTP (ISIN: IT0005383309), E1.5-2.0bln of the 2.70% Oct-30 BTP (ISIN: IT0005654642), E3.0-3.5bln of the 3.60% Oct-35 BTP (ISIN: IT0005648149) and E1.5-2.0bln of the 1.05% Apr-34 CCTeu (ISIN: IT0005652828).
• Belgium will come to the market on Friday with ORI Facility with details to be confirmed the preceding day.