EURJPY TECHS: Northbound

• RES 4: 166.69 High Oct 31 2024 and a key resistance
• RES 3: 166.10 High Nov 6         
• RES 2: 165.21/43 High May 13 and bull trigger / High Nov 8 2024 
• RES 1: 164.26 High May 29 
• PRICE: 163.35 @ 16:27 BST Jun 4 
• SUP 1: 162.58/161.09 50-day EMA / Low May 23 and key support
• SUP 2: 160.99 Low Apr 22  
• SUP 3: 160.01 50% Retracement Feb’25 - May’25 Upleg
• SUP 4: 159.48 Low Apr 9  

A bullish theme in EURJPY remains intact. The latest recovery from the May 23 low, signals the end of the corrective pullback between May 13 - 23. If correct, the move higher also marks a resumption of the uptrend. Key short-term support lies at 161.09, the May 23 low, where a break is required to highlight a stronger reversal and suggest scope for a deeper correction. Sights are on 165.21, the May 13 high and bull trigger.   

$13.4B to price Wednesday

• Date $MM Issuer (Priced *, Launch #)
• 06/04 $2.75B #Brazil $1.5B +5Y 5.68%, $1.25B 2035 tap 6.73%
• 06/04 $2.5B *British Colombia 10Y SOFR+95
• 06/04 $2B *IDA (Int Development Assn) 5Y SOFR+46
• 06/04 $1.75B #Macquarie $750M 3Y +50, $1B 3Y SOFR+74
• 06/04 $1.5B #Targa Resources $750M 5Y +100, $750M +10Y +133
• 06/04 $1.25B #RBC 60NC5 6.75%
• 06/04 $1B #Cemex PerpNC5 7.2%
• 06/04 $650M #Gerdau Trade 10Y +140

On the labor market front, the Beige Book reports "Employment has been little changed since the previous report", though the overall tone was downbeat, with some signs of easing wage pressures. 

• 7 of 12 districts saw flat/stable/steady employment changes (up from 4 prior). 3 saw modest/slight increases (5 prior), with 2 seeing headcounts decrease (3 prior).
• From the Beige Book summary: "Many Districts reported lower employee turnover rates and more applicants for open positions. Comments about uncertainty delaying hiring were widespread. All Districts described lower labor demand, citing declining hours worked and overtime, hiring pauses, and staff reduction plans. Some Districts reported layoffs in certain sectors, but these layoffs were not pervasive. Two Districts noted that, for many of their contacts, hiring plans had not changed since the start of the year. Wages continued to grow at a modest pace, although many Districts reported a general easing in wage pressures. A few Districts indicated that higher costs of living continued to put upward pressure on wages."
• See summary table below: