USDJPY TECHS: Corrective Cycle Remains In Play
- RES 4: 158.87 High Jan 10 and a key resistance
- RES 3: 158.29 2.618 projection of the Sep 17 - 26 - Oct 1 price swing
- RES 2: 158.00 Round number resistance
- RES 1: 156.58/157.89 High Nov 28 / 20 and the bull trigger
- PRICE: 155.42 @ 16:26 GMT Dec 5
- SUP 1: 154.46 Intraday low
- SUP 2: 153.41 50-day EMA
- SUP 3: 152.82 Low Nov 7
- SUP 4: 151.54 Low Oct 29
A corrective cycle in USDJPY remains in play, and Friday’s bounce off lows is a further indication of the underlying bull trend. The deeper retracement has allowed the recent overbought condition to unwind. Support at 155.30, the 20-day EMA, has been breached. Any extension lower exposes the 50-day EMA at 153.41. Moving average studies remain in a bull-mode position, highlighting a dominant medium-term uptrend. A resumption of the trend would open 158.00.
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SOFR OPTIONS: Large Mar'26 SOFR Call Spread Buy
- +25,000 SFRH6 96.62/96.81 call spds, 2.75 ref 96.395
US STOCKS: Late Equities Roundup: Overbought Tech Sector Concerns Cool
- Stocks have recovered from the prior session's sell-off Wednesday, back to or near late Monday levels. Currently, the DJIA trades up 258.93 points (0.55%) at 47342.77, S&P E-Minis up 48.25 points (0.71%) at 6850.75, Nasdaq up 264.4 points (1.1%) at 23620.13.
- Information Technology sector shares led gainers on the day, rebounding after opinions of the tech sector tied to AI has been overbought dissipated: Seagate Technology +12.62%, Micron Technology +8.69%, Western Digital +7.88%, First Solar +6.30% and Teradyne +6.26%.
- Communication Services and Consumer Discretionary sector shares followed: Match Group +6.69%, Paramount Skydance +2.83%, Charter Communications +2.33% and Meta Platforms +2.22% buoyed the Communication sector while the Discretionary sector was supported by Lululemon Athletica +5.12%, Wynn Resorts +4.17%, Marriott International +4.00%, Ford Motor +3.64% and Tesla +3.53%.
- Second half declines were led by a mix of Consumer Staples, Health Care and Utilities: Zimmer Biomet Holdings -14.38%, Live Nation Entertainment -7.95%, Charles River Laboratories -7.82%, Humana -7.63%, Axon Enterprise -7.61% and Archer-Daniels-Midland -4.81%.
- Earnings expected after today's close include: Albemarle Corp, McKesson Corp, Fortinet Inc, APA Corp, Duolingo Inc, Lucid Group Inc, DoorDash Inc, Snap Inc, AppLovin Corp, Robinhood Market, Lyft Inc, Enovix Corp, QUALCOMM Inc, Dutch Bros Inc and Fair Isaac Corp.
EURGBP TECHS: Bullish Trend Sequence
- RES 4: 0.8865 1.764 proj of the Sep 15 - 25 - Oct 8 price swing
- RES 3: 0.8848 1.618 proj of the Sep 15 - 25 - Oct 8 price swing
- RES 2: 0.8835 High May 3 2023
- RES 1: 0.8830 Intraday high
- PRICE: 0.8819 @ 15:58 GMT Nov 5
- SUP 1: 0.8763 Low Nov 3
- SUP 2: 0.8741 20-day EMA
- SUP 3: 0.8707 50-day EMA
- SUP 4: 0.8656 Low Oct 8 and a key support
A bull cycle in EURGBP remains intact. The break last week of resistance at 0.8769, the Jul 28 high and a bull trigger, confirms a resumption of the uptrend and this week's fresh cycle high reinforces current conditions. Sights are on 0.8835, the May 3 2023 high. Initial support lies at 0.8763, the Nov 3 low. Note that the trend is overbought, a pullback would be considered corrective.
