EURJPY TECHS: Trend Needle Points North

• RES 4: 155.55 2.00% retracement of the Jan 10 - Apr 22 bear leg
• RES 3: 154.39 76.4% retracement of the Jan 10 - Apr 22 bear leg
• RES 2: 153.82 1.618 proj of the Sep 17 - 26 - Oct 1 price swing  
• RES 1: 153.27 High Oct 10 and the bull trigger 
• PRICE: 152.19 @ 07:12 GMT Oct 28
• SUP 1: 151.76 Intraday low
• SUP 2: 151.09 20-day EMA   
• SUP 3: 149.57 50-day EMA  
• SUP 4: 149.05 Low Oct 6 and a gap high on the daily chart 

A bull cycle USDJPY remains intact and short-term weakness is considered corrective. Attention is on key resistance at 153.27, the Oct 10 high and a bull trigger. Clearance of this hurdle would confirm a resumption of the medium-term uptrend. This would open 153.82, a Fibonacci projection. Note that MA studies are in a bull-mode position, highlighting a primary uptrend. First important support to watch lies at 151.09, the 20-day EMA.

•  RES 4: $76.82 - 2.382 proj of the Apr 9 - 23 - May 5 price swing
• RES 3: $75.43 - High Jun 23 and a bull trigger
• RES 2: $69.87/71.20 - High Sep 26 and key resistance / High Jul 30 
• RES 1: $66.78 - High Oct 24 
• PRICE: $65.39 @ 06:59 GMT Oct 28
• SUP 1: $63.86/60.07 - Low Oct 24 / 20 and the bear trigger  
• SUP 2: $58.50 - Low May 5
• SUP 3: $57.88 - Low Apr 9 and a key support
• SUP 4: $55.91 - 2.00 proj of the Jul 30 - Aug 13 - Sep 26 price swing 

Brent futures are holding on to the bulk of last week’s gains. The contract has breached resistance around the 50-day EMA, at $65.17. Clearance of this hurdle signals scope for a stronger recovery. Note that resistance at $66.58, the Oct 9 high, has been pierced. A clear breach of this level would expose key resistance at $69.87, the Sep 26 high. Key support and the bear trigger has been defined at $60.07, the Oct 20 low.

Katayama pushing back a little on the signal markets took from an earlier readout of the meeting between himself and Tsy Secretary Bessent. USDJPY is moving away from session lows as these latest headlines cross, now -0.45% on the session at 152.24 (vs a low of 151.76 overnight).

• "JAPAN FINMIN KATAYAMA: NO SPECIFIC DISCUSSION ON FX IN MEETING WITH BESSENT" RTRS
  "JAPAN FINMIN KATAYAMA: DESIRABLE FOR FX TO MOVE STABLY REFLECTING FUNDAMENTALS" RTRS
  "*KATAYAMA: DON'T THINK TREASURY READOUT ENCOURAGES BOJ RATE HIKE" RTRS
  "JAPAN FINMIN KATAYAMA: BESSENT LIKELY WASN'T URGING BOJ TO RAISE INTEREST RATE" RTRS

A reminder that the earlier readout said that "Bessent highlighted the “important role of sound monetary policy formulation and communication in anchoring inflation expectations and preventing excess exchange rate volatility, as conditions are substantially different twelve years after the introduction of Abenomics,” (via BBG).