EM ASIA CREDIT: Perusahaan Listrik Negara: H1 earnings announcement

• RES 4: 1.1954 2.0% 10-dma envelope
• RES 3: 1.1923 2.000 proj of the Feb 28 - Mar 18 - 27 price swing
• RES 2: 1.1851 High Sep 10 2021 
• RES 1: 1.1829 High Jul 01
• PRICE: 1.1767 @ 06:15 BST Jul 7
• SUP 1: 1.1708 Low Jun  30
• SUP 2: 1.1630 20-day EMA
• SUP 3: 1.1575 Low Jun 24  
• SUP 4: 1.1447 50-day EMA

The trend condition in EURUSD remains bullish with price trading closer to its recent highs. Moving average studies are in a bull-mode position highlighting a clear uptrend and note too that corrections, when they do occur, have been shallow. This reinforces the trend condition. A resumption of gains would signal scope for a climb towards 1.1851, the Sep 10 2021 high. Key short-term support to watch lies at 1.1630, the 20-day EMA.

JGB futures are little changed, -2 compared to settlement levels.

• Japan’s leading economic indicator was at 105.3 in May versus 104.2 in April.
• Bloomberg - "Japanese Prime Minister Shigeru Ishiba said the country is prepared for all possible tariff scenarios, speaking on Fuji TV's "Sunday News The Prime" program. Japan is ready to "stand firm" and defend its interests while anticipating every possible situation, says Ishiba."
• Cash US tsys are flat to 3bps richer in today's Asia-Pac session after resuming trading following the long weekend.
• (Bloomberg) The Treasury's willingness to fund more at the short end of the yield curve will further compromise the Federal Reserve's independence and increasingly leave monetary policy de facto in fiscal hands.
• Cash JGBs are -1bp richer to 8bps cheaper across benchmarks, with a steeper curve. The benchmark 5-year yield is 0.2bp higher at 0.973% ahead of tomorrow's supply.
• (Bloomberg) -- Ryutaro Kimura, senior fixed income strategist at AXA Investment Managers, said that fiscal expansion worries have weighed on Japanese government debt since the 30-year bond auction on July 3, and super-long-term bonds have sold off sharply.
• The swaps curve has bear-steepened, with rates flat to 5bps higher.
• Tomorrow, the local calendar will see Trade Balance and Bank Lending data alongside 5-year supply.

• RES 4: 132.42 2.000 proj of the May 14 - 20 - 22 price swing
• RES 3: 132.00 Round number resistance    
• RES 2: 131.95 High Jun 13 and the bull trigger 
• RES 1: 130.76/131.33 High Jul 4 / High Jun 20
• PRICE: 130.50 @ 05:55 BST Jul 7
• SUP 1: 129.77 Low Jul 3 and the bear trigger               
• SUP 2: 129.67 76.4% retracement of the May 14 - Jun 13 bull leg  
• SUP 3: 129.30 Low May 22   
• SUP 4: 128.97 Low May 14 and a reversal trigger  

Bund futures are trading above last week’s low. The bounce resulted in a print above 130.52, the 50-day EMA. A clear break of it would highlight a possible reversal. The next important resistance is 131.33, the Jun 20 high. For bears, a resumption of weakness would refocus attention on support at 129.77, the Jul 3 low. Clearance of this support would open 129.30, the May 22 low.