USDJPY TECHS: Key Support Remains Exposed

• The German Bund and broader Bond futures have extended onto Yesterday's gains after the US said that an interim deal to re open the strait could be imminent as per Qatar, Rubio and Bessent.
• That news provided a notable move in Yields, pushing the German 10yr Yield from a 3.209% high on Friday to what should be quoted just under 3.10% into Today's session.
• The US 20yr Yield got close to a 5.30% print on Friday and has fallen down to 5.1427% at present.
• After printing a 19yrs high, the US 30yr Yield has unwound 13bps in just 2 sessions, now at 5.1470%.
• Some will see the next resistance in Bund at 125.74, but seeing better at 125.77. Support moves up to 125.04.
• Today's Services PMIs are final readings for France, Germany, EU, UK and US. US ADP is also due, but the overall focus will be on the US ISM services later this afternoon.
• SUPPLY: Germany sells €500mln of 2029, 2035, 2053 respectively (shouldn't impact Futures).
• SPEAKERS: Fed Cook.

• RES 4: 6620.37 2.382 proj of the May 4 - 6 - 18 price swing   
• RES 3: 6600.00 Round number resistance
• RES 2: 6568.25 2.236 proj of the May 4 - 6 - 18 price swing 
• RES 1: 6543.00 Intraday high
• PRICE: 6539.00 @ 07:01 BST Aug 05
• SUP 1: 6335.73/6246.34 20- and 50-day EMA      
• SUP 2: 6201.00 Low Jul 21 and a reversal trigger
• SUP 3: 6155.00 Low Jun 12   
• SUP 4: 5986.00 Low Jun 11 

The trend set-up in EUROSTOXX 50 futures remains bullish and the positive start to this week’s session reinforces current conditions. The contract has breached 6462.00, the Jul 6 high and bull trigger, to confirm a resumption of the primary uptrend and maintain the price sequence of higher highs and higher lows. Sights are on 6568.25 next, a Fibonacci projection. A key support to watch lies at 6246.34 the 50-day EMA.

• RES 4: 0.8652 High Jun 26 
• RES 3: 0.8632 76.4% retracement of the Jun 22 - Jul 15 bear leg  
• RES 2: 0.8601 61.8% retracement of the Jun 22 - Jul 15 bear leg
• RES 1: 0.8588 High Jul 30
• PRICE: 0.8573 @ 07:03 BST Aug 05
• SUP 1: 0.8518/8455 Low Jul 22 / 15 and the bear trigger 
• SUP 2: 0.8443 2.236 projection of the May 18 - 25 - Jun 22 swing   
• SUP 3: 0.8400 Round number support
• SUP 4: 0.8374 76.4% retrace of the Dec 19 ‘24 - Nov 14 ‘25 bull leg  

Recent short-term gains in EURGBP have allowed an oversold trend condition to unwind. The trend needle, however, continues to point south and the latest recovery is considered corrective. Key resistance and a pivot level to watch, is the 50-day EMA at 0.8581. It has been pierced, a clear break of it would signal scope for a stronger recovery near-term. Key support and the bear trigger lies at 0.8455, the Jul 15 low.