USDJPY TECHS: Trend Needle Points South
- RES 4: 137.48 High Dec 20
- RES 3: 136.56 200-dma
- RES 2: 134.77/81 High Jan 6 / 23.6% Oct - Jan Downleg
- RES 1: 133.43 20-day EMA
- PRICE: 132.29 @ 15:44 GMT Jan 10
- SUP 1: 131.31 Low Jan 9
- SUP 2: 129.52 Low Jan 3 and the bear trigger
- SUP 3: 128.44 1.236 proj of the Oct 31 - Nov 15 - 21 price swing
- SUP 4: 127.53 Low May 31
USDJPY is unchanged and remains below last Friday’s high of 134.77. The pullback and weak close on Friday, reinforces a bearish theme and suggests that recent gains have been a correction. Moving average studies are in a bear-mode position, highlighting a broader downtrend. The key support and trigger for a resumption of the trend is 129.52, Jan 3 low. Initial key short-term resistance is at 134.77.
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RATINGS: Affirmations On Friday
Sovereign rating reviews of note from after hours on Friday include:
- Fitch affirmed the United Kingdom at AA-; Outlook Negative
- DBRS Morningstar confirmed Slovenia at A (high), Stable Trend
- DBRS Morningstar confirmed Malta at A (high), Stable Trend
EQUITIES: Biased Lower To Start The Week
E-minis are little changed to 0.2% lower into London hours after Asia-Pac participants reacted to Friday’s weakness on Wall St., while weighing up further steps from China re: living with COVID against reports which pointed to a fairly notable uptick in COVID cases in the county, even as the official daily case count moderates alongside looser testing requirements. Firmer than expected U.S. PPI data, released Friday, also had participants on the defensive ahead of Tuesday’s U.S. CPI print and this week’s barrage of central bank meetings. The Hang Seng was the biggest loser amongst the major regional benchmarks, running ~2% lower as we move towards the close.
LOOK AHEAD: UK Timeline of Key Events (Times GMT)
| Date | Time | Period | Event |
| 12-Dec | 0700 | Oct | UK Monthly GDP/Trade/Production/Services/Construction |
| 13-Dec | 0700 | Oct | Labour Market Survey |
| 14-Dec | 0700 | Nov | Inflation Report |
| 14-Dec | 0930 | Oct | Halifax House Price Index |
| 15-Dec | 1200 | ---- | Bank Of England Interest Rate Decision |
| 16-Dec | ---- | ---- | BOE Announce Q1 Active Gilt Sales Schedule |
| 16-Dec | 0001 | Dec | Gfk Monthly Consumer Confidence |
| 16-Dec | 0700 | Nov | Retail Sales |
| 16-Dec | 0930 | Dec | S&P Global Manufacturing/Services PMI (flash) |
| 19-Dec | 1100 | Dec | CBI Industrial Trends |
| 21-Dec | 0700 | Nov | Public Sector Finances |
| 21-Dec | 1100 | Dec | CBI Distributive Trades |
| 22-Dec | ---- | ---- | House of Commons Recess Starts |
| 22-Dec | 0700 | Q3 | GDP Second Estimate |
