EURJPY TECHS: Bulls Remain In The Driver’s Seat

• RES 4: 122.71 2.764proj of the May 14 - 20 - 21 price swing
• RES 3: 122.35 2.500 proj of the May 14 - 20 - 21 price swing 
• RES 2: 122.00 Round number resistance
• RES 1: 121.73 High Jun 13 and the bull trigger 
• PRICE: 120.82 @ Close Jun 17 
• SUP 1: 120.35 Low Jun 16      
• SUP 2: 119.48 Low May 26 
• SUP 3: 118.87 Low May 21  
• SUP 4: 118.51 Low May 14 and key support 

The trend condition in BTP futures is unchanged, it remains bullish and the latest pullback appears corrective. Fresh cycle highs last week reinforce a bull theme and maintain the price sequence of higher highs and higher lows. Sights are on the 122.00 handle next. Key support to watch lies at 118.51, the May 14 low. A clear break of this level would highlight a reversal. First support is 120.35, Monday’s low.

• RES 4: 0.8624 High Apr 21    
• RES 3: 0.8592 61.8% retracement of the Apr 11 - May 29 downleg
• RES 2: 0.8566 High Apr 24 
• RES 1: 0.8560 Intraday high 
• PRICE: 0.8548 @ 07:04 BST Jun 18
• SUP 1: 0.8498/8454 Low Jun 16 / 50-day EMA 
• SUP 2: 0.8407/8356 Low Jun 4 / Low May 29 and the bear trigger 
• SUP 3: 0.8327 1.382 proj of the Apr 11 - 16 - 21 price swing
• SUP 4: 0.8316 Low Mar 28 and a key support

A bullish theme in EURGBP remains intact and last week’s gains plus this week’s extension, reinforce current conditions. The cross remains above the 50-day EMA and the breach of the average highlights a stronger reversal. This signals scope for a climb towards 0.8592, a Fibonacci retracement. On the downside, support to watch lies at 0.8454, the 50-day EMA. Clearance of this level would highlight a possible reversal.

• Headline 3.36%Y/Y in May (3.53% in April)
• Core 3.54%Y/Y in May (3.83% in April)
• Services 4.68%Y/Y in May (5.42% in April)
• NEIG 1.57%Y/Y in May (1.08% in April)
• Energy -1.68%Y/Y in May (-0.94% in April)
• Food, alcohol, tobacco 4.68%Y/Y in May (4.01% in April)