EURJPY TECHS: Pierces Support At The 50-Day EMA

• Crude has seen support today from continued Russian supply fears, recent strikes on energy infrastructure, and oil product strength, offsetting pressure from a stronger dollar.
• WTI Oct 25 is up by 2.5% at $65.6/bbl.
• Recent Ukrainian drone attacks shut down facilities accounting for at least 17% of Russia's oil processing capacity, or 1.1mn bpd, according to Reuters' calculations.
• OPEC+ will hold a meeting this weekend to decide on output for October.
• Despite today’s move, a bear cycle in WTI futures remains intact and recent gains are considered corrective.
• Initial resistance to watch is $66.56, the Aug 4 high. Key short-term resistance has been defined at $69.36, the Jul 30 high. A resumption of weakness would pave the way for a move towards $57.71, the May 30 low.
• Meanwhile, spot gold has also rallied by 1.5% to $3,529/oz, taking the yellow metal to a fresh all-time high.
• UBS said that investors are adding to gold allocations as Fed rate cuts loom, and they see gold making new highs in the coming quarters.
• Today’s gains in gold have resulted in a breach of key resistance at $3,500.1, the Apr 22 high, confirming a resumption of the primary uptrend and an extension of the sequence of higher highs and higher lows.
• The next objective is $3,547.9, a Fibonacci projection.

US President Donald Trump is shortly due to appear in the Oval Office to announce that US Space Command will be relocated from Colorado to Alabama, reversing a decision from former President Joe Biden not to move the command. LIVESTREAM

• Politico notes: "The decision ends a bitter yearslong turf war between Alabama and Colorado leaders over the best home for the unit. Each side argued the other benefited from politically motivated decisions by either Trump or Biden to reward states that voted for them."
• The Oval Office announcement is Trump's first public appearance since a Cabinet meeting last Tuesday. Trump's light schedule since that meeting has fueled social media speculation over his health, despite several trips to his golf course in Virginia and a regular stream of Truth Social posts.
• The announcement is likely to be accompanied by ad hoc remarks to the press on a range of issues. Treasury Secretary Scott Bessent told the Washington Examiner yesterday that Trump may declare a 'national housing emergency' this fall to address rising house prices – a ‘core issue’ for the Trump administration in the coming months.
• Bessent told Fox News in a separate interview that “all options are on the table” for further sanctions on Russia, after Trump’s first deadline for Russian President Vladimir Putin to make progress on peace talks with Ukraine passed yesterday. 

• RES 4: 151.62 61.8% retracement of the Jan 10 - Apr 22 bear leg
• RES 3: 150.92 High Aug 1 and a key resistance 
• RES 2: 149.81 76.4% retracement of the Aug 1 - 14 bear leg 
• RES 1: 148.79/149.12 Intraday high / 61.8% of Aug 1 - 14 bear leg  
• PRICE: 148.12 @ 16:09 BST Sep 2
• SUP 1: 146.21 Low Aug 14 and bear trigger
• SUP 2: 145.86 Low Jul 24
• SUP 3: 145.40 50% retracement of the Apr - Aug upleg
• SUP 4: 145.19 Trendline drawn from the Apr 22 low 

USDJPY traded higher Tuesday but for now, remains inside its range. Resistance to watch is 148.78, the Aug 22 high. It has been pierced, a clear break of it would highlight a range breakout and a stronger bullish theme. This would also undermine the recent bear threat. A breach would open 149.12, a Fibonacci retracement. The bear trigger lies at 146.21, Aug 14 low. Clearance of this level would resume a downtrend that started in  August.