EURJPY TECHS: Bullish Theme

• Date $MM Issuer (Priced *, Launch #)
• 09/22 $5B #Broadcom $1B 5Y +53, $2.25B +10Y +68, $1.75B +12Y +78

• RES 4: 151.62 61.8% retracement of the Jan 10 - Apr 22 bear leg
• RES 3: 150.92 High Aug 1 and a key resistance 
• RES 2: 149.64 76.4% retracement of the Aug 1 - Sep 17 bear leg 
• RES 1: 148.38/149.14 High Sep 22 / High Sep 3  
• PRICE: 147.73 @ 19:16 BST Sep 22
• SUP 1: 146.77/145.49 Low Sep 18 / 17 and a pivot support 
• SUP 2: 145.40 50% retracement of the Apr - Aug upleg
• SUP 3: 144.10 61.8% retracement of the Apr - Aug upleg
• SUP 4: 143.45 Low Jul 3 

USDJPY recovered sharply from last week’s low and the pair is holding onto the bulk of its latest gains. A bullish candle pattern on Sep 17 - a hammer formation - provided an early reversal signal. Last Wednesday, the pair breached a number of important short-term support levels, however, this has not confirmed a bearish threat. A continuation higher would open 149.14, the Sep 3 high. Pivot support is 145.49, the Sep 17 low.

European yields were little changed Monday, with longer-end Gilts slightly outperforming their German counterparts.

• Yields opened the session a little higher coming in from the weekend, carrying on from a bond-bearish tone late last week, but gradually descended to session lows by mid-day London time with few immediate macro/headline movers in evidence.
• 10Y Gilt yields briefly hit a post-Sept 4 high (4.724%) but otherwise trade was largely within last week's ranges.
• Comments from BOE's Pill and Bailey didn't prove impactful. MNI's Macro team noted however that all seven of the non-dissenting MPC members are due to make public appearances before the end of September.
• On the day, the UK curve bull flattened, with Germany's twist steepening.
• Periphery/semi-core EGB spreads widened slightly. BTP spreads were a little wider, despite Friday's one-notch rating upgrade to Italy from Fitch; France's were little changed following Friday's one-notch downgrade from Morningstar DBRS.
• Tuesday's schedule includes flash September PMIs, and another appearance by BOE's Pill.

Closing Yields / 10-Yr EGB Spreads To Germany

• Germany: The 2-Yr yield is down 0.5bps at 2.018%, 5-Yr is down 0.6bps at 2.32%, 10-Yr is unchanged at 2.748%, and 30-Yr is up 2bps at 3.357%.
• UK: The 2-Yr yield is down 0.2bps at 3.98%, 5-Yr is down 0.2bps at 4.13%, 10-Yr is down 0.3bps at 4.712%, and 30-Yr is down 1.1bps at 5.548%.
• Italian BTP spread up 1.2bps at 79.7bps / Spanish up 0.3bps at 55.1bps