USDJPY TECHS: Bulls Remain In The Driver’s Seat
- RES 4: 146.77 2.0% 10-dma envelope
- RES 3: 146.12 76.4% Oct-Jan Downleg
- RES 2: 145.66 1.50 proj of the Jan 16 - Mar 8 - Mar 24 price swing
- RES 1: 145.07 High Jun 30
- PRICE: 144.60 @ 06:37 BST Jul 5
- SUP 1: 143.29/142.52 Low Jun 27 / 20-day EMA
- SUP 2: 142.09 Former bull channel top drawn from the Jan 16 high
- SUP 3: 141.21 Low Jun 20
- SUP 4: 139.85 Low Jun 16
USDJPY remains in consolidation mode. The trend direction remains up and the pair is holding on to its recent gains. The focus is on 145.66, a Fibonacci projection and 146.77 further out, resistance at the 2.0% 10-dma envelope. The trend condition remains the most overbought (as per the 14-day RSI) since mid-October. Key short-term support is at 142.09, the former bull channel top. A break would signal scope for a deeper correction.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
USDJPY TECHS: Resistance At The Channel Top Remains Intact
- RES 4: 142.51 61.8% of the Oct 16 2022 - Jan 16 bear leg
- RES 3: 142.16/35 2.0% 10-dma envelope / High Nov 21 2022
- RES 2: 141.61 High Nov 23 2022
- RES 1: 141.01 Bull channel top from the Jan 16 low
- PRICE: 140.04 @ 06:37 BST Jun 5
- SUP 1: 138.45 Low Jun 1
- SUP 2: 138.20 20-day EMA
- SUP 3: 137.43 Low May 19
- SUP 4: 136.31 Low May 17
USDJPY bullish conditions remain intact and the latest pullback appears to be a correction. Recent highs resulted in a test of the top of a bull channel, drawn from the Jan 16 low which intersects at 141.01 today and represents a key resistance. A clear break of it would reinforce bullish conditions and open 141.61, the Nov 23 2022 high. For bears, a stronger reversal lower would highlight a potential top. Key support to watch is 138.20, the 20-day EMA.
RATINGS: Affirmations Across The Board On Friday
Sovereign rating reviews of note from after hours on Friday include:
- Fitch affirmed the United Kingdom at AA-; Outlook Negative
- S&P affirmed France at AA; Outlook Negative
- DBRS Morningstar confirmed Germany at AAA, Stable Trend
EURGBP TECHS: Trend Outlook Remains Bearish
- RES 4: 0.8835 High May 3
- RES 3: 0.8814 High May 4
- RES 2: 0.8731 50-day EMA
- RES 1: 0.8651/8677 High May 31 / 20-day EMA
- PRICE: 0.8606 @ 06:28 BST Jun 5
- SUP 1: 0.8567 Low Jun 1
- SUP 2: 0.8562 Low Dec 13 2022
- SUP 3: 0.8547 Low Dec 1 2022 and key support
- SUP 4: 0.8522 Low Aug 30 2022
The EURGBP trend condition remains bearish. Last week, the cross printed a fresh 2023 low, at 0.8567 on Jun 1. Note too that the DMA space also signals downside momentum and a potential death cross (50-dma < 200-dma). The focus is on 0.8562 next, the Dec 13 low. The 14d RSI is technically oversold for the first time since March 2021 - a price reversal would signal scope for a correction. Initial firm resistance is at 0.8677 the 20-day EMA.
