EURJPY TECHS: Bull Cycle Remains Intact

• RES 4: 177.08 2.000 proj of the Feb 28 - Mar 18 - Apr 7 price swing 
• RES 3: 175.43 High Jul 11 ‘24 and a key medium-term resistance
• RES 2: 174.86 1.764 proj of the Feb 28 - Mar 18 - Apr 7 price swing
• RES 1: 173.97 High Jul 28 and the bull trigger 
• PRICE: 172.73 @ 16:32 BST Sep 10
• SUP 1: 171.20 50-day EMA
• SUP 2: 169.73/45 Low Jul 31 / 23.6% of the Feb 28 - Jul 28 bull leg
• SUP 3: 168.46 Low Jul 1  
• SUP 4: 167.46 Low Jun 23   

The trend set-up in EURJPY is unchanged, it remains bullish and sights are on key resistance and the bull trigger at 173.97, the Jul 28 high. Clearance of this level would confirm a continuation of the bull phase. Note that moving average studies are in a bull-mode position too, highlighting a primary uptrend. A break of 173.97 would open 174.86, a Fibonacci projection. Key support to watch lies at the 50-day EMA at 171.20.  

SOFR & Treasury options leaned towards upside calls Wednesday, focus on tomorrow's CPI inflation data after this morning's softer than expected PPI underpinned underlying futures. Rate futures drifting around post-data highs while projected rate cuts rebound from early morning (*) levels: Sep'25 at -28bp (-27.2bp), Oct'25 at -47.7bp (-45.9bp), Dec'25 at -70bp (-67.5bp), Jan'26 at -82.7bp (-79.9bp).

• SOFR Options:
  • -8,000 SFRZ5 96.50 calls, 6.5 vs. 96.355/0.33%
  • -2,500 SFRH6 97.00 calls, 9.0 vs. 96.595/0.26%
  • -5,000 SFRZ5 96.00/96.12/96.25/96.37 call condors, 4.0 ref 96.355
  • -7,000 SFRU5 96.00 calls, 1.0 ref 95.9825
  • +4,000 SFRZ5 96.68/96.87/96.93 call flys, 1.25
  • 10,000 0QZ5 96.87 put vs. 3QZ5 96.62 put spds 0.0 net/Blue Dec over
  • Block/screen over 35,000 SFRZ5 96.43 calls, 8.0 ref 96.33 to -33.5
  • Block, 2,870 SFRH6 96.87 calls 54.5 vs. 97.095/0.58%
  • Block, 5,000 SFRH6 96.50/96.87/97.00 broken put trees, 4.75/splits vs. 97.11
  • -9,000 SFRH6 96.00/96.31/96.43 broken put trees, 3.0
  • 9,000 SFRH6 96.00 puts, 1.75 last
  • 3,500 SFRV5 96.37/96.62/97.00 broken call flys ref 96.335
  • +3,274 SFRZ5 96.50/96.62/96.68/96.81 call condors, 1.0
  • 5,000 SFRX5 96.43/96.68 call spds
  • 5,000 SFRV5 96.31 puts ref 96.335
  • 2,000 SFRZ5 96.50/96.62 call spds ref 96.33
  • +5,000 SFRU5 95.93/96.00/96.06 call flys, 2.5
  • over 7,000 SFRU5 96.00/96.12/96.25 call flys, 0.5-0.75 ref 95.9725
• Treasury Options:
  • -8,170 TYV5 112.5/113.5/114.5 call flys, 20 vs. 113-15/0.05%
  • 6,800 TYV5 114.5/115 call spds ref 113-16.5
  • 4,100 FVV5 110.5/111 call spds
  • over 4,500 FVX5 110 calls, 31 ref 109-29 to -28.75
  • 10,000 TYX5 111/112 put spds, 8 ref 113-15
  • Block, 10,000 TYX5 113/114 call spds vs. 111.5/113 put spds 0.0 net
  • 10,000 TYV5 113.5/TYX5 112.5 put spds, 2 net/Nov over
  • 2,000 USV5 112/113/115 1x1x2 broken put trees
  • 2,000 TYV5 113.5 straddles,
  • +2,000 FVZ5 110/111 call spds vs. 108.75 put, 2.0 net ref 109-25
  • 2,000 USX5 133 calls vs. 3,000 USX5 104 puts ref 116-27
  • -1,000 TYZ5 113 straddles, 209 ref 113-10
  • +5,000 TUV5 104/104.75 call over risk reversals, 2
  • -4,000 TYZ5 130.5 calls w/ -2,000 TYZ5 104.5 puts ref 113-10.5
  • 1,140 TYV5 112/112.5 3x2 put spds ref 113-09.5
  • 2,200 TYV5 112.25 puts ref 113-08.5

• Stocks remain mixed late Wednesday, the weaker DJIA (after rising to new record high of 45,711.34 Tuesday) dragging the S&P eminis and Nasdaq indexes off early session highs. Currently, the DJIA trades down 237.69 points (-0.52%) at 45474.62, S&P E-Minis up 10 points (0.15%) at 6532, Nasdaq down 10.8 points (0%) at 21866.97.
• Information Technology and Utility/Energy sector shares continued to outperform in the second half, the tech sector led by software maker Oracle - rallying a whopping 38% after announcing it had secured "several billion-dollar contracts in it's latest quarter" the WSJ reported.
• Chip makers continued to underpin the tech sector: Broadcom +8.36%, Arista Networks +6.46%, NVIDIA +3.95% and Micron Technology +3.87%.
• Utility/Energy sector shares held gains as oil prices rebound (WTI +1.13 at 63.76): Vistra Corp +8.07%, Constellation Energy +7.80%, NRG Energy +5.22%, PG&E Corp +3.14%, APA Corp +5.42%, Baker Hughes +3.29% and Halliburton +3.22%.
• Conversely, Consumer Discretionary and Health Care sectors revered prior session gains, the former weighed by Amazon.com -3.02%, CarMax -2.70%, McDonald's -2.49%, Chipotle Mexican Grill -2.17%.
• Meanwhile, equipment and services shares weighed on the Health Care sector: Bio-Techne -4.82%, HCA Healthcare -4.38%, Insulet -4.22% and ResMed -3.52%.