USDJPY TECHS: Bear Threat Remains Present

• RES 4: 135.96 76.4% retracement of the Mar 8 - 24 bear leg
• RES 3: 135.11 High Mar 15
• RES 2: 134.75 61.8% retracement of the Mar 8 - 24 bear leg
• RES 1: 133.87 High APr 10
• PRICE: 133.38 @ 15:30 BST Apr 11
• SUP 1: 131.83/130.64 Low Apr 10 / 5
• SUP 2: 129.64 Low Mar 24 and the bear trigger
• SUP 3: 128.09 Low Feb 2
• SUP 4: 127.23 Low Jan 16 and key support

The trend direction in USDJPY remains down and recent short-term gains are considered corrective, despite Monday’s strong rally. However, attention is on resistance at 133.87, Monday’s high. A break of this level would strengthen a short-term bullish theme and highlight a clear breach of the 50-day EMA. This would open 134.75,a Fibonacci retracement. On the downside, a reversal lower would signal scope for a return to 130.64, the Apr 5 low.

Progressive pollster, Data for Progress, has published a report showing that 82% of voters approve of Congress strengthening rules on banks to prevent a repeat of Silicon Valley Bank collapse.

• DFP: “Over two-thirds of voters (69 percent) report being “very concerned” or “somewhat concerned” about the health of the banking industry in the U.S. following SVB’s collapse. And voters overwhelmingly support congressional action to strengthen the rules for banks: 87 percent of Democrats, 80 percent of Independents, and 78 percent of Republicans support measures that would make a similar bank failure less likely.”
• DFP: "When given a description of the Warren/Porter proposal and asked if they would support Congress passing a bill to repeal the 2018 deregulation, voters are again supportive across partisan lines: 81 percent of Democrats and 66 percent of both Independents and Republicans support reinstating the repealed bank regulations to make sure that financial institutions like SVB undergo the proper reviews."

Figure 1: Voter Support for Congress Strengthening Rules on Banks

Source: Data for Progress