USDJPY has traded above 135.00 again. The move higher maintains the current bullish theme and the positive price sequence of higher highs and higher lows. Moving average studies are pointing north and indications are that the USD has further to go, despite being overbought. The focus is on the 136.04, a Fibonacci projection. Initial firm support is seen at 131.39, the 20-day EMA. Any short-term retracement would be considered corrective.
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The USDJPY outlook is bullish and the pair remains above last Thursday’s low of 127.52. This level represents the first key support. A resumption of gains and a break above 131.35, May 9 high, would clear the path for 131.96, a Fibonacci projection. A move higher would also maintain a bullish price sequence of higher highs and higher lows and confirm a resumption of the downtrend. Key trend support is unchanged at 126.95, Apr 27 low.
Aussie bond futures were better bid than their U.S. counterparts during early Sydney dealing, even as wider risk assets benefitted from the latest supportive steps drawn up for the Chinese property market (analysts have questioned the impact that the move will have) & confirmation that Shanghai will start (gradually) easing COVID restrictions from today. That was before the wider, China- inspired defensive flows provided some fresh support for the space, with the longer end leading the bid.