USDJPY TECHS: Bearish Reversal
- RES 4: 137.51 Former channel support drawn from the Mar 4 low
- RES 3: 136.58 High Jul 28
- RES 2: 135.96 61.8% retracement of the Jul 14 - Aug 2 downleg
- RES 1: 135.58 High Aug 8
- PRICE: 132.81 @ 16:27 BST Aug 11
- SUP 1: 131.74 Low Aug 11
- SUP 2: 130.41/130.00 Low Aug 2 / Round number support
- SUP 3: 129.51 Low Jun 2
- SUP 4: 128.64 Low Jun 1
USDJPY traded sharply lower before stabilising on Thursday. This signals a possible reversal of the recent correction between Aug 2 - 8. A bearish theme remains in place following the Jul 28 bull channel breakout. The channel is drawn from the Mar 4 low and the break signalled a reversal. A continuation lower would expose 130.41, the Aug 2 low and the bear trigger. Firm resistance has been defined at 135.58, the Aug 8 high.
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USDJPY TECHS: Bull Cycle Extends
- RES 4: 140.00 Psychological round number
- RES 3: 139.48 1.00 proj of the Jun 16 - 22 - 23
- RES 2: 138.56 1.618 proj of the Feb 24 - Mar 28 - 31 price swing
- RES 1: 137.75/138.00 High Jul 8 / Round number resistance
- PRICE: 136.65 @ 16:22 BST Jul 12
- SUP 1: 135.21/134.27 20-day EMA / Low Jun 23
- SUP 2: 133.10 Bull channel base from the Mar 4 low
- SUP 3: 131.50 Low Jun 16 and a key support
- SUP 4: 130.00 Round number support
USDJPY remains bullish. The pair traded higher Monday and breached resistance at 137.00, the Jun 29 high. The break confirms a resumption of the primary uptrend and signals scope for an extension. The fresh cycle high also highlights the fact that corrections remain shallow, reinforcing underlying bullish conditions. The focus is on the 138.00 handle and 138.56 further out, a Fibonacci projection. Firm short-term support lies at 134.27, the Jun 23 low.
PIPELINE: $1.3B Deutsche Bank 4NC3 Launched
- Date $MM Issuer (Priced *, Launch #)
- 07/12 $4B *World Bank 5Y (IBRD) SOFR+40
- 07/12 $1.3B #Deutsche Bank 4NC3 +305
US: Corporate Credit Update: Holding Steady
Investment-grade corporate credit risk currently running mildly lower with stocks trading marginally mixed: SPX eminis currently trading -37.5 (-0.96%) at 3863.5; DJIA -103.05 (-0.33%) at 31234.1; Nasdaq -222.8 (-1.9%) at 11410.74.
- Investment grade risk measured by Markit's CDXIG5 index slips -0.609 to 91.619; CDXHY5 high yield index at 98.782 (-0.001).
- Outperforming credit sectors (tighter or least wide): Health Care (+0.7) followed by Consumer Discretionary, Consumer Staples and Industrials all +0.8.
- Lagging sectors (wider or least narrow): Financials subordinated (+2.0), Energy and Materials (+1.9) and Sr Financials (+1.4).
