USDJPY TECHS: Southbound
- RES 4: 136.63 200-dma
- RES 3: 134.77/81 High Jan 6 / 23.6% Oct - Jan downleg
- RES 2: 131.31/132.94 Low Jan 9 / 20-day EMA
- RES 1: 129.52 Low Jan 3 and a recent breakout point
- PRICE: 127.55 @ 16:01 GMT Jan 13
- SUP 1: 127.46 Low Jan 13
- SUP 2: 126.81 1.382 proj of the Oct 31 - Nov 15 - 21 price swing
- SUP 3: 126.36 Low May 24 and a key support
- SUP 4: 125.49 1.50 proj of the Oct 31 - Nov 15 - 21 price swing
USDJPY remains soft and has resumed its downtrend following the break of support at 129.52 Thursday, marking the Jan 3 low. With moving average studies in a bear mode condition and a bearish price sequence highlighting a clear downtrend, further weakness is likely. Note that the 50- and 200-dmas are on the cusp of forming a bearish death cross. The focus is on 127.53, the May 31, 2022 low.. Key resistance has been defined at 134.77, Jan 6 high.
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US STOCKS: Extending Lower As Fed Chair Powell Discusses Labor
Stocks extend session lows as Fed Chairman Powell touches upon jobs market in press Conference:
"Job gains have been robust with employment rising by an average of 272,000 jobs per month over the last three months. Although job vacancies have moved below their highs and the pace of job gains slowed from earlier in the year, the labor market continues to be out of balance with demands substantially exceeding the supply of available workers."
Current markets:
- - DJIA down 325.57 points (-0.95%) at 33780.93
- - S&P E-Mini Future down 47 points (-1.16%) at 4009
- - Nasdaq down 162.5 points (-1.4%) at 11094.84
US: Inflation Breakeven Closes In On Year-To-Date Lows Post FOMC
- The FOMC statement/SEP helps drive the 10Y inflation breakeven more notably below the 2.25% level that had recently proved a barrier since mid-Nov, before rising on Powell’s Brookings remarks.
- At 2.20% (-5bp), it’s at lows since early October prior to payrolls strength and the last of the US CPI beats, close to sustained lows year to date although technically still off the brief low of 2.10%.
Source: Bloomberg
US TSYS: Yield Curves Bending Flatter
Yield curves off steeper levels pre-FOMC, extending inversion again as rebound in bonds off initial lows outpaces short end. Currently:
- 3M10Y +3.553, -84.034 (L: -98.936 / H: -82.129)
- 2Y10Y -2.283, -74.616 (L: -74.955 / H: -65.961)
- 2Y30Y -4.307, -73.529 (L: -73.626 / H: -59.826)
- 5Y30Y -3.173, -15.022 (L: -15.472 / H: -5.285)
