EURJPY TECHS: Maintains A Bullish Tone
- RES 4: 159.92 2.236 proj of the May 11 - 29 - 31 price swing
- RES 3: 159.09 2.0% 10-dma envelope
- RES 2: 158.72 2.00 proj of the May 11 - 29 - 31 price swing
- RES 1: 158.00 High Jun 28
- PRICE: 157.46 @ 16:21 BST Jun 29
- SUP 1: 155.06/154.05 Low Jun 23 / 20 and key short-term support
- SUP 2: 153.94 20-day EMA
- SUP 3: 151.61 Low Jun 15
- SUP 4: 150.92 50-day EMA
EURJPY bulls remain in the driver’s seat and the cross is holding on to its latest gains. This week’s price action reinforces the current bullish theme and maintains the price sequence of higher highs and higher lows. Moving average studies are in a bull mode position too, highlighting positive market sentiment. The focus is on 158.72, a Fibonacci projection. Initial key support is at 155.06, the Jun 23 low.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EURJPY TECHS: Bullish Outlook
- RES 4: 152.81 1.50 proj of the Mar 20 - 21 - Apr 6 price swing
- RES 3: 152.00 1.382 proj of the Mar 20 - 21 - Apr 6 price swing
- RES 2: 151.61 High May 2 and the bull trigger
- RES 1: 151.07 High May 29
- PRICE: 149.94 @ 16:09 BST May 30
- SUP 1: 149.02 20-day EMA
- SUP 2: 147.32/146.64 13 50-day EMA / 2.0% 10-dma envelope
- SUP 3: 146.13 Low May 11 and a key support
- SUP 4: 145.67 High Mar 31
EURJPY maintains a short-term bullish tone. Last week’s move higher resulted in a breach of 150.32, 76.4% of the May 2 - 11 sell-off. The break of this level opens 151.61, the May 2 high and a bull trigger. The 50-day EMA, which intersects at 147.32, remains intact and is a key support. A clear break of this EMA is required to signal a reversal. Initial support lies at 149.02, the 20-day EMA.
PIPELINE: $2.75B ATT Long 10Y Debt Launched
Total $13.35B in corporate bonds to price Tuesday.
- Date $MM Issuer (Priced *, Launch #)
- 05/30 $5B #CVS Health Corp $1B +5Y +125, $750M +7Y +155, $1.25B 10Y +165, $1.25B 30Y +200, $750M 40Y +215
- 05/30 $2.75B #AT&T +10Y +175
- 05/30 $1.75B Bank of Montreal $1.35B 3Y +120, $400M 3Y SOFR+133
- 05/30 $1.6B #TD Bank 3Y SOFR+73
- 05/30 $1B #AerCap Ireland 5Y +217
- 05/30 $750M #NiSource $300M 5Y +135, $450M 10Y +175
- 05/30 $500M *Kexim Bank 10Y +90
- 05/30 $Benchmark FAB (First Abu Dhabi Bank) 5Y Green (order book >$1B)
US TSYS: Markets Roundup: Debt Deal Meets House Rules Hurdles
- US fixed income markets enjoyed strong support after returning from extended holiday weekend, risk appetite generally positive after a bipartisan agreement to suspend the debt limit for the next two years while keeping non-defense spending flat for the next year (+1% in the second year) was announced Saturday.
- Getting the deal to pass through a fractious Congress before the June 5 "X" date is the real challenge. The agreement faces its final procedural hurdle today when it is considered by the House Rules Committee at 15:00 ET 20:00 BST.
- Treasury futures briefly pared early support following stronger than expected Home Price Index (0.6% M/M; EST. 0.2%), rebounding to new session highs after Conference Board consumer confidence came out stronger than expected in May at 102.3 (cons 99.0) although still represented a decline on the month after a sizeable upward revision to 103.7 (initial 101.3). The net impact was lowest consumer confidence since November.
- Focus turns to key employment data later this week: ADP private employment data to be released Thursday, one day later than usual due to the holiday, while May NFP will be released Friday, current median estimate at +190k job gains for May vs. +253k prior. Fed enters policy blackout at midnight Friday.
