EURJPY traded sharply lower Friday and remains weak. This marks an extension of the impulsive move lower Thursday following the reversal from above the 50-day EMA, at 142.47. The move lower leaves key resistance at 142.94, the Dec 28 high, intact. An extension would open 137.39, the Jan 3 low, where a break would resume the 2-month downtrend and open 137.03, the Aug 29 low. Clearance of 142.94 is required to signal a reversal.
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Bonds bounce (30YY 3.5315) back above pre-FOMC levels as Fed Chairman Powell, answers question over size and pace of future hikes to bring inflation back to 2%. After raising 425bp this year, Powell said "we're into restrictive territory, it's now not so important how fast we go. It's far more important to think what is the ultimate level and then at a certain point, the question will become how long do we remain restrictive."
Yield curves flatter as short end lagging bounce so far.
Stocks extend session lows as Fed Chairman Powell touches upon jobs market in press Conference:
"Job gains have been robust with employment rising by an average of 272,000 jobs per month over the last three months. Although job vacancies have moved below their highs and the pace of job gains slowed from earlier in the year, the labor market continues to be out of balance with demands substantially exceeding the supply of available workers."
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Source: Bloomberg