EURJPY TECHS: Bull Continuation Pattern

• RES 4: 184.34 2.236 proj of the Jul 31 - Sep 29 - Oct 2 price swing
• RES 3: 184.21 Bull channel top drawn from the Feb 28 low
• RES 2: 183.07 2.000 proj of the Jul 31 - Sep 29 - Oct 2 price swing 
• RES 1: 182.64 High Dec 09
• PRICE: 182.10 @ 16:35 GMT Dec 10
• SUP 1: 180.50 20-day EMA
• SUP 2: 178.98/178.47 Low Nov 14 / 50-day EMA 
• SUP 3: 177.15 Low Nov 10
• SUP 4: 176.08 Bull channel support drawn from the Feb 28 low

The trend needle in EURJPY continues to point north and a fresh cycle high this week reinforces current conditions. Moving average studies are in a bull-mode position too, highlighting a dominant uptrend. The cross has cleared 182.01, the Nov 20 high and bull trigger. The breach confirms a resumption of the uptrend. Sights are on 184.21, the top of a bull channel drawn from the Feb 28 low. First key support is 180.50, the 20-day EMA.

• Why did the Committee cut today instead of waiting until January? Powell says "in terms of inflation, it's coming in a touch lower" and the labor market cooling has continued, including that payrolls have been overstated and have been negative on an adjusted basis since April:
• "In October, I said that there was no certainty of moving. And that was indeed correct. I said it's possible you could think about it that way, but I was careful to say other people could look at it differently. So why do we move today? You know, I would say point to a couple things. First of all, gradual cooling in the labor market has continued. Unemployment is now up three tenths from June through September. Payroll jobs averaging 40,000 per month since April. We think there's an overstatement in these numbers by about 67,000 so that would be negative 20,000 per month. And also, just to point one other thing, surveys of households and businesses both show declining supply and demand for workers. So I think you can say that the labor market has continued to cool gradually, maybe just a touch more gradually than we thought."

• Powell frets that the upcoming payrolls data could be distorted due to the impact of the government shutdown on data collection - particularly the Household Survey of employment. "We are going to get data, but we are going to have to look at it carefully and a somewhat skeptical eye by the January meeting. notwithstanding that, we will have a lot of the December data by January. So, I am saying what we get, for example, for CPI, or for the household survey, we are going to look at that really carefully, and understand that it may be distorted by very technical factors."
• Asked if risks to rates are two-sided from here: "I don't think that a rate hike is anybody's base case at this point - I'm not hearing that."