EURJPY TECHS: Northbound
- RES 4: 171.88 High Jul 19 ‘24
- RES 3: 171.28 1.382 proj of the Feb 28 - Mar 18 - Apr 7 price swing
- RES 2: 171.09 High Jul 23 ‘24
- RES 1: 170.61 High Jul 03
- PRICE: 170.22 @ 16:04 BST Jul 04
- SUP 1: 169.04 Low Jul 02
- SUP 2: 167.87 20-day EMA
- SUP 3: 167.13 Low Jun 20
- SUP 4: 165.66 50-day EMA
EURJPY traded higher on Thursday resulting in a print above 170.47, the 76.4% retracement of the Jul 11 - Aug 5 sell-off. A clear break of this price point would strengthen bullish conditions and signal scope for extension. This would open 170.28 next, a Fibonacci projection. The trend is overbought, a pullback would unwind this condition. Support to watch lies at 167.87, the 20-day EMA.
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EURJPY TECHS: Support Remains Intact
- 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.
PIPELINE: Corporate Bond Roundup: $2.75B Brazil 2Pt Launched
$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
FED: Beige Book: Downbeat On Labor Market Conditions (3/3)
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:
