EURJPY TECHS: Resistance Remains Exposed
- RES 4: 165.43 High Nov 8
- RES 3: 164.90 High Dec 30 ‘24 and a key medium-term resistance
- RES 2: 164.55 High Jan 7
- RES 1: 163.76/164.19 High Apr 25 / High Mar 18 and the bull trigger
- PRICE: 162.13 @ 08:53 GMT May 1
- SUP 1: 161.43/159.48 50-day EMA / Low Apr 9
- SUP 2: 158.30 Low Apr 7 and key support
- SUP 3: 157.02 76.4% retracement of the Feb 28 - Mar 18 bull cycle
- SUP 4: 155.60 Low Low Mar 4
A bullish theme in EURJPY remains intact and short-term weakness appears corrective. Key short-term support lies at 158.30, the Apr 7 low. A break of it is required to signal scope for a deeper retracement. This would open 157.02, a Fibonacci retracement. First support to watch is 161.43, the 50-day EMA. Attention is on 164.19, the Mar 18 high and a bull trigger. Clearance of this hurdle would resume the uptrend.
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ITALY DATA: Very little positive in the PMI manufacturing report
Nothing particularly positive in the Italian PMI manufacturing press release. It missed expectations by 1.4 points, falling to 46.6 from 47.4 (against an expected increase to 48.0). And most of the details were diappointing. The following highlights from the press release:
- "Production volumes were lowered once again and at the fastest rate for four months.
- "New orders continued to decrease at a sharp and steady pace
in March, keeping firms in retrenchment mode." - "Sustained reduction in headcounts amid signs of excess capacity"
- "Charges up after six months of discounting and despite softer cost pressures"
MNI: ITALY MAR MANUFACTURING PMI 46.6 (FCST: 48.0); FEB 47.4
- MNI: ITALY MAR MANUFACTURING PMI 46.6 (FCST: 48.0); FEB 47.4
EGBS: Spreads To Bunds Little Changed
Spreads vs. Bunds within 1bp of yesterday’s closing levels.
- Initial spread tightening was aided by the Euro Stoxx 50 ticking further away from yesterday’s lows, but that bid has started to fade.
- Spanish manufacturing PMI a little softer than-expected, with SPGBs ~0.5bp wider vs. Bunds since the release (as much of a broader sentiment move as Spanish PMI driven).
- OAT/Bunds consolidates the recent move back above 70bp, with French political and fiscal uncertainty set to remain in play, despite Le Pen’s guilty verdict (she has been suspended from running in elections for 5 years but is appealing).
