JGB TECHS: (H6) Possible Short-Term Reversal

• RES 4: 187.36 Bull channel top drawn from the Feb 28 low 
• RES 3: 186.41 2.618 proj of the Jul 31 - Sep 29 - Oct 2 price swing
• RES 2: 185.77 2.500 proj of the Jul 31 - Sep 29 - Oct 2 price swing
• RES 1: 185.57 High Jan 14 and the bull trigger
• PRICE: 185.15 @ 17:37 GMT Jan 21
• SUP 1: 182.63 Low Jan 19
• SUP 2: 182.08 50-day EMA
• SUP 3: 181.57 Low Dec 17 
• SUP 4: 180.50 Low Dec 8 

The strong recovery in EURJPY from Monday’s low highlights the end of the recent 3-day correction. The primary bull trend remains intact and the cross continues to trade above support at 182.21, the 50-day EMA. A clear breach of the average would suggest scope for a deeper retracement. The bull trigger is 185.57, the Jan 14 high. Clearance of this hurdle would resume the uptrend - sights are on 187.36, a bull channel top drawn from the Feb 28 low.     

• Gold rose to another record high ahead of President Trump’s address at the WEF in Davos today, before paring gains as his comments on not using force to acquire Greenland helped to stabilise sentiment somewhat.
• Subsequently, Trump has posted on social media to say that he has a framework for a future deal on Greenland with NATO, and won't impose Greenland-linked tariffs on Feb 1, prompting a further risk-on move.
• Spot gold has now gapped lower and is currently up by just 0.2% on the day at $4,774/oz at typing, well below the earlier high at $4,888.42.
• The trend structure in gold remains bullish and another fresh cycle high today reinforces current conditions. Sights are on the $4,900.0 handle next, and further out the psychological $5,000.0 level.
• Initial firm support to watch lies at $4,542.8, the 20-day EMA.
• Meanwhile, crude has reversed earlier losses and is slightly higher on the day as the market weighs disruption to CPC supplies.
• WTI Mar 26 is up by 0.4% at $60.6/bbl.
• A bull cycle in WTI futures remains intact for now and a short-term cycle high last week reinforces a bull theme.
• Price has recently traded through a key short-term resistance at $60.91, the Oct 24 high, strengthening the bull phase and highlighting a stronger reversal of the recent downtrend. Sights are on $62.41 next, a Fibonacci retracement.
• Initial firm support lies at $58.68, the 50-day EMA.

• Bit of risk-on after Pres Trump posts on social media he has a "framework for future deal on Greenland with NATO" adding he "won't impose Greenland-linked tariffs on Feb 1".
• TYH6 +7 at 111-20.5 vs. 111-21.5 high
• Stocks at or just beyond earlier highs: 
  • DJIA up 590.08 points (1.22%) at 49039.18
  • S&P E-Mini Future up 74.25 points (1.09%) at 6899
  • Nasdaq up 238.2 points (1%) at 23165.55
• Gold trims gains: to appr 4815.0 vs. 4888.42 record high earlier.