EURJPY TECHS: Corrective Pullback
- RES 4: 145.57 High Mar a2 and a key resistance
- RES 3: 144.96 High Mar 15
- RES 2: 143.98 76.4% retracement of the recent Mar 2 - 20 bear cycle
- RES 1: 142.64/143.63 50-day EMA / High Mar 22
- PRICE: 140.55 @ 15:47 GMT Mar 24
- SUP 1: 140.00 Round number support
- SUP 2: 138.83 Low Mar 20
- SUP 3: 137.96 3.0% 10-dma envelope
- SUP 4: 137.92 Low Jan 19
EURJPY has pulled back from Wednesday’s high of 143.63. This level represents a key short-term resistance where a break is required to reinstate a bullish theme. A continuation lower would expose key support at 138.83, the Mar 20 low and a bear trigger. Note that moving average studies remain in a bull mode set-up - this suggests the latest pullback is a correction. A break of 143.63 would open 143.98, 76.4% of the Mar 2 - 20 bear cycle.
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EURJPY TECHS: Fades Off Resistance
- RES 4: 145.83 High Dec 20
- RES 3: 145.29 2.0% 10-dma envelope
- RES 2: 144.53 76.4% retracement of the Dec 15 - Jan 3 bear leg
- RES 1: 144.16 High Feb 21
- PRICE: 143.18 @ 16:19 GMT Feb 22
- SUP 1: 139.56/06 Low Feb 10 and a key support / Low Jan 20
- SUP 2: 138.45 2.0% 10-dma envelope
- SUP 3: 137.92 Low Jan 19
- SUP 4: 137.39 Low Jan 3 and the bear trigger
EURJPY traded stronger still Tuesday, with prices topping handle resistance at 144.00 before the rally moderated into the Wednesday close. This further firms the outlook for the cross, and extends the winning streak posted last week. The recent break of 142.99 confirms a continuation of the recovery that started on Jan 3. The next upside level sits at 144.53, ahead of vol-band resistance at 2.0% 10-dma envelope. Firmer support is expected at 139.94, the Feb 3 low and the outlook remains bullish.
STIR FUTURES: BLOCK: Large Mar'23/Jun'23 SOFR Steepener
Mar'23 SOFR futures bought over Jun'23 at 1441:45ET
- 30,000 SFRH3 95.0025, post-time offer
- 30,000 SFRM3 94.650, through 94.66 post-time bid
CANADA: GoCs and BAX Futures Fade Treasuries Pressure From Minutes
- GoC yields holding a solid -5-6.5bps lower on the day, the 2Y on balance moving slightly lower post the FOMC Minutes with no spillover from 2Y Tsy yields currently 2.5bps higher (for -1bp on the day).
- Similar moves in rates space, with BAX futures implied yields -1bps for the front Mar’23 and 4-5bps lower through 2H23-1H24 contacts. The Dec’23 is now 11bps lower since yesterday’s CPI print.
