BTP TECHS: (U5) Pullback Appears Corrective

• RES 4: 122.70 2.000 proj of the Mar 14 - Apr 4 - 9 price swing
• RES 3: 122.00 Round number resistance
• RES 2: 121.93 76.4% of the Dec 5 ‘24 - Mar 14 bear leg (cont)
• RES 1: 121.43 1.618 proj of the Mar 14 - Apr 4 - 9 price swing
• PRICE: 121.11 @ Close Jun 2 
• SUP 1: 120.30 20-day EMA      
• SUP 2: 119.64/00 50-day EMA / Low May 14
• SUP 3: 118.76/09 Low Apr 15 / 14
• SUP 4: 117.28 Low Apr 10

A bull cycle in BTP futures remains intact and recent gains reinforce current conditions. Key resistance and the bull trigger at 120.72, the May 8 high, has been cleared. This confirms a resumption of the uptrend and opens 121.43 next, a Fibonacci projection. Key support to watch lies at 119.64, the 50-day EMA. A clear break of the average would signal scope for a deeper retracement. First support lies at 120.30, the 20-day EMA.

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• RES 4: 150.49 High Apr 2   
• RES 3: 149.28 High Apr 3
• RES 2: 147.67/148.65 High May 14 / 12 and a key resistance
• RES 1: 144.27/146.28 20-day EMA / May 29 high   
• PRICE: 142.95 @ 06:59 BST Jun 3
• SUP 1: 142.12 Low May 27 and a key support
• 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 

A bear cycle in USDJPY remains in play and recent weakness reinforces current conditions. A reversal price pattern on May 29 - a shooting star candle - signals the end of the correction between May 27 - 29. Key short-term resistance has been defined at 146.28, the May 29 high. Sights are on 142.12, the May 27 low. Clearance of this level would confirm a resumption of the bear leg and open 139.89, the Apr 22 low.