EURJPY TECHS: Sights Are On The Bull Trigger

• RES 4: 177.08 2.000 proj of the Feb 28 - Mar 18 - Apr 7 price swing 
• RES 3: 175.43 High Jul 11 ‘24 and a key medium-term resistance
• RES 2: 174.86 1.764 proj of the Feb 28 - Mar 18 - Apr 7 price swing
• RES 1: 173.97 High Jul 28 and the bull trigger 
• PRICE: 170.14 @ 17:19 BST Aug 4
• SUP 1: 169.73/45 Low Jul 31 / 23.6% of the Feb 28 - Jul 28 bull leg
• SUP 2: 169.17 50-day EMA
• SUP 3: 168.46 Low Jul 1  
• SUP 4: 167.46 Low Jun 23   

A bullish trend condition in EURJPY remains intact and for now the recent move down is considered corrective. Key support to watch lies at the 50-day EMA at 169.17. A clear break of the EMA is required to highlight a stronger short-term bearish threat. Moving average studies remain in a bull-mode position highlighting an uptrend. A break of the Jul 28 high of 173.97, would resume the bull cycle.  

• Stocks remain firm late Monday, at/near session highs as markets focus on dovish rate cut pricing and incoming earnings this week, instead of Friday's slowing labor market data. Currently, the DJIA trades up 500.46 points (1.15%) at 44089.01, S&P E-Minis up 80.75 points (1.29%) at 6345.25, Nasdaq up 365.9 points (1.8%) at 21016.17.
• Information Technology and Materials sector shares led gainers in the first half: IDEXX Laboratories surged +26.21% after revenue beat expectations. Meanwhile, materials stocks trade strong: Martin Marietta Materials +4.82%, Newmont Corp +4.07%, Eastman Chemical +3.27% and Vulcan Materials +2.75%.
• As did tech some shares: Monolithic Power Systems +5.68%, F5 Inc +4.58%, Super Micro Computer +4.20%, Palantir Technologies +3.95%, Advanced Micro Devices +3.49%. Other gainers include Williams-Sonoma +5.73%, PG&E Corp +5.35% and Ingersoll Rand +4.79%.
• Not all IT stocks gained Monday, as ON Semiconductor declined -13.36% following weak earnings. Elsewhere, Dexcom -3.52%, Berkshire Hathaway -3.39%, Church & Dwight Co -2.68%, Adobe -2.14%, Kraft Heinz -2.12%, Exxon Mobil -2.08%.
• After Monday’s close: Diamondback Energy, ONEOK Inc, Vertex Pharmaceuticals, Williams Cos, Voyager Technologies, Axon Enterprise Inc, BioMarin Pharmaceutical Inc, Hims & Hers Health, Palantir Technologies and Sterling Infrastructure.
• Early Tuesday announcements from: Pfizer, Apollo Global, Clear Channel Outdoor Holdings, Henry Schein, Archer-Daniels-Midland, DuPont de Nemours, Cummins Inc, Fidelity National Information, TransDigm Group, Molson Coors Beverage, Caterpillar, Marriott International, Duke Energy Corp and Lucid Group.
• Late Tuesday earnings announcements: Amgen Inc, Rivian Automotive, Arista Networks, Advanced Micro Devices, Match Group, Mosaic, Snap, International Flavors & Fragrances and Super Micro Computer.

• RES 4: 152.31 High Feb 19 
• RES 3: 151.62 61.8% retracement of the Jan 10 - Apr 22 bear leg 
• RES 2: 151.21 High Mar 28 
• RES 1: 150.92 Intraday high 
• PRICE: 147.20 @ 17:18 BST Aug 4
• SUP 1: 147.06 Low Aug 4
• SUP 2: 146.80 50% retracement Jul - Aug Upleg
• SUP 3: 146.51 50-day EMA
• SUP 4: 145.86 Low Jul 24  

USDJPY reversed sharply from Friday’s intraday high and this is allowing a short-term overbought condition to unwind. While the pullback in prices Friday may have been corrective, the break and close below 147.63, the 20-day EMA, is a concern. A clear break of this support zone would undermine the recent bull theme. A break of last week’s 150.92 high would resume the uptrend.