EURJPY TECHS: Bull Cycle Extends
- RES 4: 145.64 High Sep 12 and the bull trigger
- RES 3: 144.48 High High Sep 14
- RES 2: 143.70 76.4% retracement of the Sep 12 - 26 downleg
- RES 1: 142.49 61.8% retracement of the Sep 12 - 26 downleg
- PRICE: 141.96 @ 06:36 BST Sep 29
- SUP 1: 139.44/137.40 Low Sep 29 / 26 and key support
- SUP 2: 136.02 Low Aug 25
- SUP 3: 135.52 Low Aug 24
- SUP 4: 134.95 Low Aug 16 and a key support
EURJPY traded higher yesterday, extending the recovery from 137.40, the Sep 26 low. Recent weakness between Sep 12 - 26 appears to have been a correction and if correct, the latest recovery signals the end of that bear cycle. An extension would open 143.70, a Fibonacci retracement and signal scope for a climb towards key resistance at 145.64, the Sep 12 high. On the downside, key support lies at 137.40, the Sep 26 low.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
US TSY FUTURES: TYZ2 To Fresh Session Highs
TYZ2 registers incremental fresh session highs in recent trade, aided by several rounds of screen-based lifts. No headline flow observed. Contract last deals +0-02+ at 117-05.
EURGBP TECHS: Impulsive Rally Extends
- RES 4: 0.8679 High Jul 1 and a key resistance
- RES 3: 0.8646 2.0% 10-dma envelope
- RES 2: 0.8631 76.4% retracement of the Jun 15 - Aug 2 downleg
- RES 1: 0.8604 High Aug 30
- PRICE: 0.8592 @ 06:32 BST Aug 31
- SUP 1: 0.8512 High Aug 19 and a recent breakout level
- SUP 2: 0.8470/8408 20-day EMA / Low Aug 23
- SUP 3: 0.8388/40 Low Aug 17 / 2 and the bear trigger
- SUP 4: 0.8313 Low Apr 22
EURGBP traded higher Tuesday and the latest rally continues to accelerate. The cross has cleared a number of short-term resistance points recently and yesterday traded above 0.8585, the Jul 21 low. The 0.8600 handle has also been pierced to put prices at the best levels since early July. This strengthens the current bullish outlook and attention is 0.8631, a Fibonacci retracement. Initial support is seen at 0.8512, the Aug 19 high.
AUSSIE BONDS: Early Bid Moderates
Aussie bonds have backed away from their early highs as we have worked our way through the Sydney day, nudging lower after a mix of domestic and international data releases (below-expectations Q2 completed construction, largely in-line private sector credit, and marginal beats in Chinese PMIs), tracking a limited downtick in U.S. Tsys.
- Cash ACGBs run flat to 2.0bp richer across the curve, with 30s leading the way higher.
- YM is +2.5 and XM is +1.0. EFPs have narrowed a little, with the 3-/10-Year box steepening, while Bills run flat to 6 ticks richer across the reds, bull flattening
- The latest round of ACGB Nov-32 supply was absorbed smoothly, with fairly nondescript internal metrics observed.
- CoreLogic house prices for Aug are due ahead of tomorrow’s Sydney session, while Thursday’s data docket will be headlined by Aug final m’fing PMI, Jul housing loan data, and Aug commodity prices.
