US TSYS: Curves Twist Steeper, Quiet Return from Christmas Holiday

• -5,000 FVH6 109-25, sell through 109-27.75 post time bid at 1500:13ET, DV01 $213,300.
• The 5Y contract trades 109-28.25 last (-1.75)

• RES 4: 184.34 2.000 proj of the Jul 31 - Sep 29 - Oct 2 price swing
• RES 3: 183.16 Bull channel top drawn from the Feb 28 low
• RES 2: 183.07 1.764 proj of the Jul 31 - Sep 29 - Oct 2 price swing 
• RES 1: 182.01 High Nov 20 and the bull trigger
• PRICE: 181.33 @ 16:33 GMT Nov 26
• SUP 1: 179.77 Low Nov 21
• SUP 2: 179.19/177.12 20- and 50-day EMA values 
• SUP 3: 175.71 Low Nov 5  
• SUP 4: 175.03 Bull channel support drawn from the Feb 28 low 

A bull cycle in EURJPY remains intact and the cross is trading closer to its recent highs. The move higher last week confirms a resumption of the uptrend and maintains the bullish price sequence of higher highs and higher lows. Sights are 183.16, the top of a bull channel drawn from the Feb 28 low. First key support lies at 179.19, the 20-day EMA. A pullback would be considered corrective.

• You can clearly see the deterioration over time in the breadth of employment level responses in the table below.
• Whilst one district seeing a small increase isn’t unusual, there is starting to be a clearer shift to those seeing declines albeit still mostly only slight declines at this stage.