EURJPY TECHS: Bulls Remain In The Driver’s Seat

• RES 4: 121.93 76.4% of the Dec 5 ‘24 - Mar 14 bear leg (cont)       
• RES 3: 121.43 1.618 proj of the Mar 14 - Apr 4 - 9 price swing    
• RES 2: 121.00 High Feb 7 (cont) and a key resistance  
• RES 1: 120.21/72 High May 9 / 8 and the bull trigger               
• PRICE: 119.32 @ Close May 13 
• SUP 1: 119.06 50-day EMA       
• SUP 2: 118.09 Low Apr 14       
• SUP 3: 117.28 Low Apr 10 
• SUP 4: 116.06 Low Apr 9    

A bull cycle in BTP futures remains intact. However, near-term, a corrective cycle signals potential for a pullback and the contract has traded lower this week. Price has breached the 20-day EMA, at 119.59 , exposing a firmer support at 119.06, the 50-day EMA. A clear break of the average would signal scope for a deeper retracement. Key resistance and the bull trigger has been defined at 120.72, the May 8 high. 

• RES 4: 151.21 High Mar 28 and a key resistance    
• RES 3: 150.49 High Apr 2
• RES 2: 149.28 High Apr 3
• RES 1: 148.54/65 76.4% of Mar 28 - Apr 22 bear leg / High May 12
• PRICE: 147.17 @ 07:08 BST May 14
• SUP 1: 146.32/144.93 50- and 20-day EMA   
• SUP 2: 142.36 Low May 6 
• SUP 3: 141.97 Low Apr 29  
• SUP 4: 139.89 Low Apr 22 and a bear trigger

The primary trend condition in USDJPY is bearish and gains since Apr 22 appear corrective. This corrective phase remains in play, for now. Resistance at the 50-day EMA, at 146.32, has been cleared, strengthening a bullish theme. The move higher has exposed 148.54, a Fibonacci retracement (pierced). A clear break of this level would strengthen a bull theme. On the downside, a reversal lower would refocus attention on 142.36, the May 6 low.

• GERMANY APRIL HICP 2.2% Y/Y (2.2% FLASH; 2.3% MARCH)
• GERMANY APRIL HICP 0.5% M/M (0.5% FLASH; 0.4% MARCH)