BTP TECHS: (H6) Off Recent Highs

• RES 4: 186.41 2.618 proj of the Jul 31 - Sep 29 - Oct 2 price swing
• RES 3: 185.77 2.5000 proj of the Jul 31 - Sep 29 - Oct 2 price swing
• RES 2: 185.05 Bull channel top drawn from the Feb 28 low
• RES 1: 184.88 Intraday high 
• PRICE: 184.38 @ 07:08 GMT Dec 22
• SUP 1: 181.80 20-day EMA
• SUP 2: 179.66 50-day EMA 
• SUP 3: 178.48 Low Nov 12
• SUP 4: 176.92 Bull channel support drawn from the Feb 28 low

The trend structure in EURJPY is bullish and Friday’s impulsive rally strengthens current conditions, and confirms a resumption of the primary uptrend. Sights are on 185.05, the top of a bull channel drawn from the Feb 28 low. This level also represents a key resistance point. On the downside, First key support to watch lies at 181.80, the 20-day EMA. A breach of it would signal the start of a corrective cycle.

• 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: 157.89 High Nov 20 and bull trigger 
• PRICE: 157.35 @ 07:00 GMT Dec 22
• SUP 1: 155.71/154.29 20- and 50-day EMA values
• SUP 2: 153.62 Low Nov 14  
• SUP 3: 152.82 Low Nov 7 
• SUP 4: 151.54 Low Oct 29 

The trend structure in USDJPY is bullish and Friday’s strong rally reinforces this theme. Note that moving average studies are in a bull-mode position, highlighting a dominant uptrend. Sights are on 157.89, the Nov 20 high and a bull trigger. A break of this hurdle would confirm a resumption of the uptrend. Support to watch lies at 154.29, the 50-day EMA. A clear breach of it would undermine the bull theme and signal scope for a deeper corrective pullback.

• MNI: UK Q3 GDP +0.1% Q/Q, +1.3% Y/Y