US: Trump Oval Offical Meeting With Central African Ministers Underway Shortly

• RES 4: 166.69 High Oct 31 2024 and a key resistance
• RES 3: 166.10 High Nov 6         
• RES 2: 165.21/43 High May 13 / High Nov 8 2024 
• RES 1: 164.07 High May 15 
• PRICE: 163.75 @ 16:41 BST May 28
• SUP 1: 161.09 Low May 23      
• SUP 2: 160.99 Low Apr 22  
• SUP 3: 160.01 50% Retracement Feb’25 - May’25 Upleg
• SUP 4: 159.48 Low Apr 9  

EURJPY has recovered from its lows and for now, this undermines the recent bearish theme and signals the end of the recent corrective leg between May 13 - 23, and a likely resumption of the uptrend. Key short-term support has been defined at 161.09, the May 23 low, where a break is required to suggest scope for a deeper correction. A continuation higher would expose 165.21, the May 13 high and bull trigger.  

• The greenback continues to trade with a more constructive manner on Wednesday, as a stable equity backdrop provides a more supportive tone for the USD index. This has allowed the DXY to extend the bounce off the week’s lows to 1.2%, narrowing the gap to both the 100.00 handle and initial resistance at the 20-day EMA.
• Headlines and newsflow have been few and far between for markets, with a semblance of stability for the Japanese yield curve also helping contain markets, as well as reduced headlines on the flow of trade deals with the US.
• USDJPY has once again outperformed, rising 0.45% on the session and threatening to close back above the 145.00 handle for the first time since May 16. Despite this week’s strong bounce, a technical downtrend in USDJPY remains intact and short-term gains are considered corrective. On the upside, initial firm resistance to watch is 145.68, the 50-day EMA.
• In similar vein, EURUSD has slipped back below the 1.13 handle as price looks to snap the uptrendline drawn off the early May low. 1.1284, the 38.2% retracement for the upleg off 1.1065, has been tested and clearance below would open the 50-dma which had successfully held as support when tested earlier this month.
• NZD is outperforming following the RBNZ rate decision. While the bank cut rates - as expected - by 25bps to 3.25%, the board suggested that the base rate is near the 'neutral' zone, which may limit the space for further rate cuts ahead.
• Latin American currencies have been notable laggards on the session, as markets react to the firmer dollar and weigh risks related to fiscal and monetary policy trajectories across the region. Both the Mexican peso and the Brazilian real have fallen 0.75%, with the former taking a hit leading into Banxico’s quarterly report, which downgraded both 2025 and 2026 growth forecasts for the Mexican economy.
• The second reading of US Q1 GDP/PCE will take focus on Thursday, before markets turn their attention to Friday’s release of April Core PCE. Central bank rate decisions for the BOK and SARB are also scheduled.

• RES 4: 150.49 High Apr 2  
• RES 3: 149.28 High Apr 3
• RES 2: 148.65 High May 12 and a key resistance
• RES 1: 144.99/145.68 High May 28 / 50-day EMA
• PRICE: 144.98 @ 16:20 BST May 28
• SUP 1: 142.12 Low May 27
• SUP 2: 141.96 76.4% retracement of the Apr 22 - May 12 bull leg
• SUP 3: 139.89 Low Apr 22 and a bear trigger
• SUP 4: 138.82 1.50 proj of the Feb 12 - Mar 11 - 28 price swing 

Despite yesterday’s strong bounce, a downtrend in USDJPY remains intact and short-term gains are considered corrective. Support at 142.36, the May 6 low, has been pierced. A clear break of it would open 139.89, the Apr 22 low and the next key support. On the upside, key short-term resistance has been defined at 148.65, the May 12 high. Initial firm resistance to watch is 145.68, the 50-day EMA.