EURJPY TECHS: Firmer Off Lows, But Still Appears Vulnerable
- RES 4: 144.28 High Jun 28 and key resistance
- RES 3: 142.37 High Jul 5
- RES 2: 139.85 20-day EMA
- RES 1: 139.77 High Jul 14
- PRICE: 139.23 @ 16:33 BST Jul 14
- SUP 1: 136.87 Low Jul 8
- SUP 2: 136.25 Low May 30
- SUP 3: 135.54 3.0% 10-dma envelope
- SUP 4: 135.40 76.4% retracement of the May 12 - Jun 28 climb
EURJPY is fimer off the lows, but prices remain well below the week’s best levels. The cross appears vulnerable following the reversal from 144.28, the Jun 28 high. Price remains below the 20- and 50-day EMAs and has recently traded below support at 137.85. A clear breach of this level would strengthen bearish conditions and open 136.25, the May 30 low. Initial firm resistance is seen at 139.85, the 20-day EMA ahead of 142.37, the July 5 high.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EURJPY TECHS: Corrective Cycle
- RES 4: 145.58 High Dec 31 2014
- RES 3: 145.00 Round number resistance
- RES 2: 144.25/58 High Jun 8 / 0.764 proj of Mar 7 - 28 - Apr 5 swing
- RES 1: 142.79 High Jun 10
- PRICE: 140.43 @ 16:11 BST Jun 14
- SUP 1: 139.32/22 1.0% 10-dma envelope / 20-day EMA
- SUP 2: 138.32 High May 9
- SUP 3: 137.15 50-day EMA
- SUP 4: 136.25 Low May 30
EURJPY remains below last week’s high of 144.25 on Jun 8. The latest pullback is still considered corrective. The recent rally above 140.00 confirmed a resumption of the uptrend that started Mar 7. Moving average studies still point north, reinforcing current conditions and signalling scope for a continuation higher towards 144.58 next, a Fibonacci projection. Firm short-term support is seen at 139.22, the 20-day EMA.
US EURODLR OPTIONS: Large Sofr Trades
Tuesday’s US rates options flow included:
- SFRU2 97.25/97.00ps, traded 14 in 10k (on block)
- SFRZ2 96.25/96.12ps, traded 5.5 in 10k
- SFRZ2 96.00/95.87ps, bought for 4.25 in 10k, 30k total, with 20k traded earlier
- SFRZ2 97.50/97.75/98.00c fly, bought for 1 in 50k total
- SFRZ2 96.00/95.87ps, bought for 4.25 in 10k, 30k total, with 20k traded earlier
- EDQ2 97.81c, traded 0.75 up to 1.25 in 25k (screen), and 1 in 10k (block)
- EDZ2 99.12c, bought for 1 in 10k
- EDH3 94.00put, sold at 10.5 in 2.5k
- EDU2 97.43/97.25/97.06p fly, traded 1.5 in 5k
- EDZ2 96.75/96.25/95.00p fly, traded 12 in 6k
- 0EU2 96.12/95.87ps, traded 12 in 2.5k
- 0EZ2 95.75p, bought for 32.5 in 2.5k
US: President Biden's Approval Rating Continues To Sink
The approval rating of President Biden has continued its downward trend this week after dropping below 40% for the first time last week.
- According to Real Clear Politics, Biden's approval currently sits at 38.9%.
- Former President Donald Trump remains the most favoured "political leader" in the United States with Biden in second place.
- Trump will face another test today as voters in South Carolina, Nevada, North Dakota, and Maine go to the ballot box for primary elections.
- Trump's endorsees have underperformed in Georgia, Idaho, and Nebraska leading some analysts to conclude that the former president's influence may be on the wane.
Figure 1: President Biden Job Approval (Real Clear Politics)
