USDJPY TECHS: Holding On To Its Recent Gains

• RES 4: 93.26 1.500 proj of the May 22 - 27 - 29 price swing
• RES 3: 93.05 1.382 proj of the May 22 - 27 - 29 price swing     
• RES 2: 93.00 Round number resistance
• RES 1: 92.87 High Jun 10   
• PRICE: 92.66 @ Close Jun 10
• SUP 1: 92.33/91.56 Low Jun 10 / 9 
• SUP 2: 91.16/90.59 Low Jun 2 / Low May 29
• SUP 3: 90.11 Low May 22 and the bear trigger   
• SUP 4: 90.00 Round number support        

Gilt futures traded higher yesterday, resuming their short-term uptrend and strengthening the current bullish theme. This also marks an extension of the breach of resistance at 91.87, the May 20 high. The climb signals scope for a continuation higher and sights are on the 93.00 handle next. Initial firm support to watch lies at 91.56, the Jun 9 low. A clear break of this level is required to signal a possible reversal.

• RES 4: 150.49 High Apr 2   
• RES 3: 149.28 High Apr 3
• RES 2: 147.67/148.65 High May 14 / 12 and a reversal trigger
• RES 1: 145.29/146.28 High Jun 10 / High May 29 and key resistance   
• PRICE: 145.00 @ 06:53 BST Jun 11
• SUP 1: 142.12 Low May 27 and a key support
• SUP 2: 141.96 76.4% retracement of the Apr 22 - May 12 bull leg
• SUP 3: 139.89 Low Apr 22 and a bear trigger 
• SUP 4: 138.82 1.50 proj of the Feb 12 - Mar 11 - 28 price swing 

A short-term bull cycle in USDJPY remains in play - for now. The latest recovery is considered corrective and the trend condition remains bearish. A resumption of weakness would open 142.12, the May 27 low. A clear break of this level would confirm a resumption of the bear leg and open 139.89, the Apr 22 low. MA studies remain in a clear bear-mode position too, highlighting a dominant downtrend. Key short-term resistance is 146.28, the May 29 high.

Couple of late large Option Blocks in Estoxx last night, these are low Delta long Hedges:

• SX5E (20th June) 5250/5200ps, bought for 2.5 in 30.3k.
• Sx5E (18th July) 5150/5100ps, bought for 5.2 and 5.3 in ~54.8k.