FOREX: USDJPY Recovery Extends, Ending Corrective Technical Cycle

“Mediators’ efforts to extend a ceasefire between the United States and Iran have made progress as the warring sides are expected to return soon to the table for another round of negotiations, regional officials said.

“The officials said mediators aim to extend the ceasefire, which is due to expire on April 22, for at least another two weeks to allow diplomacy another chance. They said that both sides gave an “in principle agreement” to extend the ceasefire.” – AP 

• In the equity space, a continuation of the strong rally in S&P E-Minis this week, reinforces the bull theme and confirms an extension of the reversal that started Mar 31. Note that medium-term trend signals remain bearish and for now, this suggests gains are potentially corrective. However, the break of the 7000.00 handle does expose the key medium-term resistance and bull trigger at 7096.50, the Jan 28 high. Initial key support to watch lies at 6567.00, the Apr 13 low.
• EUROSTOXX 50 futures remain in a bull cycle for now. The contract has recently traded through both the 20- and 50-day EMAs, paving the way for a climb towards 5945.47, the 76.4% retracement of the Feb 26 - Mar 23 bear leg. Note that a break of 5945.47 would expose the key resistance and bull trigger at 6143.00, the Feb 26 high. Key support to watch lies at 5525.00, the Apr 2 low. A breach of this support would highlight a reversal. First support is 5742.86, the 50-day EMA.

• 0RU6 96.87/97.87RR, sold the put at 4.5 in 10k.
• 0RZ6 97.00/97.87RR, sold the put at 5.25 in 7k.