USDJPY TECHS: Bulls Remain In The Driver’s Seat

• RES 4: 146.38 1.764 projection of the Jul 14 - 21 - 28 price swing
• RES 3: 145.69 1.618 projection of the Jul 14 - 21 - 28 price swing
• RES 2: 145.07 High Jun 30 and a bull trigger
• RES 1: 144.20 High Jul 7
• PRICE: 143.28 @ 16:27 BST Aug 8
• SUP 1: 141.58/140.70 20- and 50-day EMA values
• SUP 2: 138.07 Low Jul 28
• SUP 3: 137.25 Low Jul 14 and key support
• SUP 4: 136.31 Low May 17

Bullish conditions in USDJPY remain intact and the pair traded higher Tuesday, extending the recovery from the Monday low. Attention is on resistance at 144.20, the Jul 7 high. A break of this level would open key resistance and the bull trigger at 145.07, the Jun 30 high. Moving average studies remain in a bull mode condition highlighting current positive market sentiment. On the downside, initial support to watch lies at 141.58, the 20-day EMA.

• BoC-dated CORRA OIS has seen a second session of sizeable paring of hiking expectations, following on from Friday’s drop after US and Canada jobs reports.
• It currently shows +7bp for next month’s decision with a terminal now seen in October with +13.5bp. That compares with +10bp for Sept and +21bp for a terminal in Dec from Thursday’s close.
• BAX futures meanwhile are off highs from early in the session but still see an increasingly large rally out the curve building to +0.05 for the Dec’24 which puts the BAU3/Z4 spread at -85bps for its most inverted since Jul 21.
• Tomorrow sees CAD building permits before likely spillover from US CPI on Thu, but the next major domestic focus will be CAD CPI next Tue for the last CPI report before the BoC decision.