EURJPY TECHS: Northbound

• The trend condition in S&P E-Minis remains bullish. 
• This week’s fresh cycle high confirms a resumption of the uptrend that started Apr 7. 
• Sights are on 6200.00 and 6281.12, the 1.50 and 1.618 projections of the Apr 7 - 10 - 21 price swing.
• Key support remains at the 50-day EMA. 
• A clear break of it would signal a reversal. 

OI data points to net short setting across the German futures curve on Tuesday, as market participants reacted to the DFA’s Q3 funding plan and accompanying commentary.

• Tuesday’s OI % increases for the major German FI futures contracts are outlined below, with Bund OI rising by a net ~45K lots:
• Schatz OI: +0.2%
• Bobl OI: +0.9%
• Bund OI: +3.8%
• Buxl OI: +3.2%
• A reminder that our most recent Europe Positioning Indicator (Pi), released Monday, noted that positioning in German contracts was leaning "long" in April but there's been a decisive shift toward "short" in the time since. Most notably in Schatz, positioning has gone from "very long" in late May to one of two shorts in Europe Pi. The other short is in Bunds, which was "flat" previously.
• Tuesday OI data points to an extension of that trend.
• Bobl and Buxl positioning remained flat in our Pi update.

• MNI: US MAY NEW HOME SALES -13.7% TO 0.623M SAAR
• US APR NEW HOME SALES REVISED TO 0.722M SAAR