EURJPY TECHS: Bearish Reversal
- RES 4: 144.00 Round number resistance
- RES 3: 143.16 61.8% retracement of the Dec 15 - Jan 3 bear leg
- RES 2: 142.86/94 High Jan 11 / High Dec 28 and key resistance
- RES 1: 141.53 20-day EMA
- PRICE: 139.60 @ 07:11 GMT Jan 13
- SUP 1: 139.33 Intraday low
- SUP 2: 138.68 76.4% retracement of the Jan 3 - 11 rally
- SUP 3: 137.39 Low Jan 3 and the bear trigger
- SUP 4: 137.03 Low Aug 29
EURJPY traded sharply lower Thursday and remains soft. The cross found resistance this week just above the 50-day EMA, at 142.47. This leaves key resistance at 142.94, the Dec 28 high, intact and confirms the recent recovery as corrective. A stronger reversal lower would refocus attention on 137.39, the Jan 3 low, where a break would resume the 2-month downtrend and open 137.03, the Aug 29 low. A break of 142.94 is required to signal a reversal.
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USDCAD TECHS: Support Lies At The Former Trendline Resistance
- RES 4: 1.3855 High Oct 21 - Nov 16 bear leg
- RES 3: 1.3808 High Nov 3 and a key resistance
- RES 2: 1.3751 High Nov 4
- RES 1: 1.3700 High Dec 7
- PRICE: 1.3558 @ 07:03 GMT Dec 14
- SUP 1: 1.3481/3385 Former trendline resistance / Low Dec 5
- SUP 2: 1.3317/3226 Low Nov 24/25 / Low Nov 15 and bear trigger
- SUP 3: 1.3205 61.8% retracement of the Aug 11 - Oct 13 rally
- SUP 4: 1.3139 Low Sep 14
USDCAD faded off recent highs Tuesday, bringing former trendline resistance at 1.3481 into view. A bullish theme remains in place while price trades above 1.3481 - the trendline break last week strengthened bullish conditions and a resumption of gains would open 1.3751, the Nov 4 high. On the downside, a break below former-trendline resistance would flip the outlook more negative and expose 1.3385, the Dec 5 low.
UK DATA: Little immediate GBP reaction
Little GBP reaction to the CPI print - although we might get a slow grind later - particularly when SONIA futures open at 7:30GMT.
MNI: UK NOV CPI +0.4% M/M, +10.7% Y/Y
- MNI: UK NOV CPI +0.4% M/M, +10.7% Y/Y
- UK NOV CORE CPI +0.3% M/M, +6.3% Y/Y
- UK NOV RPI +0.6% M/M, +14% Y/Y
