USDJPY TECHS: Cracks Support
- RES 4: 152.31 High Feb 19
- RES 3: 151.62 61.8% retracement of the Jan 10 - Apr 22 bear leg
- RES 2: 151.21 High Mar 28
- RES 1: 150.92 High Aug 1
- PRICE: 147.30 @ 15:08 BST Aug 7
- SUP 1: 146.70 1.0% 10-dma envelope
- SUP 2: 146.62 Low Aug 5
- SUP 3: 146.60 50-day EMA
- SUP 4: 145.86 Low Jul 24
USDJPY reversed sharply from Friday’s intraday high and this is allowing a short-term overbought condition to unwind. While the pullback in prices Friday may have been corrective, the break and close below 147.57, the 20-day EMA, is a concern. A clear break of this support zone would undermine the recent bull theme. A break of last week’s 150.92 high would resume the uptrend.
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EURGBP TECHS: Holding On To Most Of Its Recent Gains
- RES 4: 0.8781 2.236 pro of the Mar 3 - 11 - 28 price swing
- RES 3: 0.8738 High Apr 11 high and a key resistance
- RES 2: 0.8694 High Apr 14
- RES 1: 0.8670 High Jul 02
- PRICE: 0.8630 @ 16:25 BST Jul 8
- SUP 1: 0.8597 Low Jul 7
- SUP 2: 0.8555/8507 20- and 50-day EMA values
- SUP 3: 0.8459 Low Jun 11
- SUP 4: 0.8407 Low Jun 4
The trend condition in EURGBP remains bullish and the cross is holding on to the bulk of its recent gains. Moving average studies are in a bull-mode position - highlighting a dominant uptrend. 0.8648, 76.4% of the Apr 11 - May 29 downleg, has been pierced. A continuation higher would further strengthen bullish conditions and open 0.8738, the Apr 11 high and a key resistance. Support to watch lies at 0.8555, the 20-day EMA.
PIPELINE: Corporate Bond Update: $2.25B American Honda 3Pt Launched
- Date $MM Issuer (Priced *, Launch #)
- 07/08 $3B *IADB (Inter-American Development Bank) 10Y SOFR+61
- 07/08 $2.25B #American Honda $900M 2Y +65, $600M 2Y SOFR+87, $750M 7Y +100
- 07/08 $Benchmark BFCM 3.25Y +72, 3.25Y SOFR+99
- 07/08 $750M Gray Media 7NC investor calls
- Potential roll-over from Monday:
- 07/?? $Benchmark Nissan Motor 5Y 7.25%a, 7Y 7.75%a, 10Y 8%a
- 07/?? $Benchmark NTT Finance Corp multi tranche investor calls: 2Y, 3Y fix/SOFR, 5Y fix/SOFR, 7Y, 10Y, 12Y -- in addition to EUR issuance 2Y, -4Y, 8Y and 12Y
GBPUSD TECHS: Pullback Considered Corrective
- RES 4: 1.3852 1.764 proj of the Feb 28 - Apr 3 - 7 price swing
- RES 3: 1.3835 High Oct 20 2021
- RES 2: 1.3800 Round number resistance
- RES 1: 1.3789 High Jul 01 and the bull trigger
- PRICE: 1.3568 @ 16:15 BST Jul 8
- SUP 1: 1.3526 Low Jul 08
- SUP 2: 1.3468 50-day EMA
- SUP 3: 1.3379 Trendline support drawn from the Jan 13 low
- SUP 4: 1.3245 Low May 19
A bull cycle in GBPUSD remains in play and recent weakness appears corrective. Support at 1.3602, the 20-day EMA, has been pierced. A clear break here would signal scope for a deeper correction towards the 50-day EMA at 1.3468. Key resistance and the bull trigger is at 1.3789, the Jul 1 high. Clearance of this hurdle would resume the uptrend. Note that MA studies are in a bull-mode position, suggesting the M/T uptrend is intact.
