USDJPY TECHS: Resistance Remains Intact

• RES 4: 151.21 High Mar 28 and a key resistance    
• RES 3: 150.49 High Apr 2
• RES 2: 149.28 High Apr 3
• RES 1: 148.54/65 76.4% of Mar 28 - Apr 22 bear leg / High May 12
• PRICE: 147.17 @ 07:08 BST May 14
• SUP 1: 146.32/144.93 50- and 20-day EMA   
• SUP 2: 142.36 Low May 6 
• SUP 3: 141.97 Low Apr 29  
• SUP 4: 139.89 Low Apr 22 and a bear trigger

The primary trend condition in USDJPY is bearish and gains since Apr 22 appear corrective. This corrective phase remains in play, for now. Resistance at the 50-day EMA, at 146.32, has been cleared, strengthening a bullish theme. The move higher has exposed 148.54, a Fibonacci retracement (pierced). A clear break of this level would strengthen a bull theme. On the downside, a reversal lower would refocus attention on 142.36, the May 6 low.

• GERMANY APRIL HICP 2.2% Y/Y (2.2% FLASH; 2.3% MARCH)
• GERMANY APRIL HICP 0.5% M/M (0.5% FLASH; 0.4% MARCH)

• RES 4: 94.50 High Apr 7 and key resistance  
• RES 3: 94.00 Round number resistance      
• RES 2: 93.59/93 High May 8 / 2
• RES 1: 92.07/92.57 Low May 9 / 20-day EMA                           
• PRICE: 91.66 @ Close May 13
• SUP 1: 91.43 Low Apr 15                                        
• SUP 2: 90.92 76.4% retracement of the Apr 9 - May 2 rally
• SUP 3: 90.47 Low Apr 11    
• SUP 4: 89.99 Low Apr 9 and a key support    

The latest pullback in Gilt futures appears corrective - for now. However, the contract has traded through support at the 50-day EMA, at 92.46. The breach signals scope for a deeper retracement and Monday’s move down resulted in a print below 91.73, the Apr 17 low. An extension of the bear leg has exposed 91.43, the Apr 15 low. Initial firm resistance is seen at 92.57, the 20-day EMA. A break of this hurdle would ease bearish pressure.