USDJPY TECHS: Trading Closer To Recent Highs
- RES 4: 147.25 3.00 proj of the Aug 2 - 8 - 11 price swing
- RES 3: 146.52 1.236 proj of the May 24 - Jul 14 - Aug 2 price swing
- RES 2: 146.03 2.764 proj of the Aug 2 - 8 - 11 price swing
- RES 1: 144.99/145.28 High Sep 7 / 2.618 proj of Aug 2 - 8 - 11 swing
- PRICE: 143.45 @ 20:02 BST Sep 15
- SUP 1: 141.51 Low Sep 9
- SUP 2: 140.48 20-day EMA
- SUP 3: 139.87 Low Sep 2
- SUP 4: 137.65 50-day EMA
USDJPY is trading closer to recent highs. The trend signal remains bullish with key short-term resistance at 144.99, Sep 7 high. A break would confirm a resumption of bullish activity. This would open 145.28 and 146.03, Fibonacci projections. On the downside, initial firm support has been defined at 141.51, the Sep 9 low. A strong support also lies at the 20-day EMA, at 140.48. A break of this 141.51-140.48 zone is required to highlight a short-term top.
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US TSYS: Late Eurodollar/SOFR/Treasury Option Roundup
Moderate to large (for summer trade) Eurodollar put spds drove Tuesday's volume, apparently ongoing position unwinds even as underlying futures traded lower on mixed housing and better than expected IP/CapU data.
- Salient flow, 20,000 Sep 96.12/96.50/96.87 put flys, 18.5 adds to 40k on Mon at 9.25 - option desks said sale as open interest declined a near amount on each leg. As the session progressed, additional spread sales included total 20,000 Dec 95.75/96.50 put spds, 40.0 vs. 96.08/0.05%, 20,000 Dec 96.12/96.50 put spds, 24.5 vs. 96.09/0.25% and 20,000 Mar 95.75/96.25 put spds, 23.0 vs. 96.085/0.24%.
EURJPY TECHS: Shallow Bounce
- RES 4: 140.07/24 High Jul 25 / Trendline drawn from the Jun 28 high
- RES 3: 139.41 High Jul 28
- RES 2: 138.22/ 50-day EMA / High Aug 10
- RES 1: 137.50 20-day EMA
- PRICE: 136.75 @ 16:11 BST Aug 16
- SUP 1: 134.84 Low Aug 3
- SUP 2: 133.40 Low Aug 2 and a bear trigger
- SUP 3: 132.66 Low May 12 and a key support
- SUP 4: 131.99 61.8% retracement of the Mar 7 - Jun 28 bull leg
EURJPY started the week on a bearish note, extending the pullback from last Wednesday’s high of 138.40. This price action soon reversed into the Tuesday close, with the cross finishing with decent gains for the day. Nonetheless, prices remain below the 50-day EMA. The recovery from 133.40, Aug 2 low, is considered corrective. Moving average studies still highlight a downtrend and the 50-day EMA, at 138.22, marks a firm resistance. Attention on the 133.40 bear trigger. Clearance of resistance at the 50-day EMA would alter the picture.
US STOCKS: Late Equity Roundup: Midday Support Evaporating
Consumer Discretionary and Staples sectors continue to outperform, while late session sell-programs taking wind out modest rally. Currently, SPX eminis trade +12.25 (0.29%) at 4310.5; DJIA +162.21 (0.48%) at 34075.94; Nasdaq underperforming -76.3 (-0.6%) at 13052.53.
- Stocks ignored mixed data that weighed on Tsys earlier, held range even after positive earnings from Home Depot (HD) beat exp: $5.05 vs. $4.983 exp, and Walmart (WMT) beat: $1.77 vs. $1.626 exp.
- Consumer Discretionary sector lead by specialty retail with Bed Bath and Beyond (BBBY) surged over 85% to late morning high of 28.60 after trade halt called. Incidentally, Bath and Body Works (BBWI) gaining 6.40% at the moment, Best Buy (BBY) +6.01%, Target (TGT) +5.38%. ahead additional retailer and high-tech earnings this wk: Target (TGT) early Wed: $0.725 est; Lowe's Group (LOW): $4.611 est; Tech: Cisco (CSCO): $0.816 est; Applied Materials (AMAT) $1.77 est early Thu.
- SPX leading/lagging sectors: As noted, Consumer Staples and Discretionary averaging +1.20%, Financials (+0.64%), Materials (+0.60%). Laggers: Information Technology (-0.56%), Energy (-0.43%) and Real Estate (-0.29%).
- Dow Industrials Leaders/Laggers: Home Depot (HD) surge on strong earnings: +15.67 at 330.28, Walmart (WMT) +7.99 at 140.59, Boeing (BA) +2.62 at 173.09. Laggers: Salesforce (CRM) -0.70 at 190.36, Goldman Sachs (GS) -0.39 at 355.46, 3M (MMM) -0.34 at 151.09.
