CHINA: Bond Futures Higher, Trending Above Key Technicals

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US Equities, just another day and another all-time high, nothing stops this train. This morning US futures have opened a little lower, E-minis -0.02%, NQU5 -0.02%. The JPY performance in the crosses is pretty mixed with EUR/JPY trying to regain its upwards momentum and the rest  seem to be stalling or in NZD/JPY’s case moving lower.

• EUR/JPY - Overnight range 173.84 - 174.39, Asia is trading around 174.40. The pair has found decent buyers and is back up towards its recent highs looking to regain the momentum higher. First support seen back towards the 173.00 area.
• GBP/JPY - Overnight 199.38 - 199.79, Asia trades around 199.65. This pair could not extend its break higher and has failed again above 200.00. Buyers need to reassert the momentum higher again soon or the probability of a deeper pullback increases. First support seen back towards the 198.00 area.
• NZD/JPY - Overnight range 86.50 - 86.82, Asia is currently dealing 86.50. This pair remains the outlier thanks to the poor NZ GDP data last week, while below 88.00/88.50 I continue to have a bias lower. Anyone looking for a vehicle to express a long JPY in the crosses should look to this pair, if cross JPY does move lower NZD/JPY should lead.
• CNH/JPY - Overnight range 20.7515 - 20.8377, Asia is currently trading around 20.7500. This pair has remained above its pivotal 20.30/20.40 support. The pair continues to trade sideways comfortably within its recent 20.40-21.00 range.

Fig 1 : CNH/JPY 2H Chart

Source: MNI - Market News/Bloomberg Finance L.P