BUND TECHS: (Z5) Pierces Support At The 50-Day EMA

• RES 4: 178.94 1.236 proj of the Jul 31 - Sep 29 - Oct 2 price swing  
• RES 3: 177.67 1.000 proj of the Jul 31 - Sep 29 - Oct 2 price swing 
• RES 2: 177.00 Round number resistance 
• RES 1: 176.35 High Oct 6      
• PRICE: 175.96 @ 06:58 BST Oct 7
• SUP 1: 173.92 Monday’s low
• SUP 2: 172.27 Low Oct 2 and key support   
• SUP 3: 171.12 Low Aug 28  
• SUP 4: 170.62 Low Aug 6   

The trend in EURJPY remains bullish and Monday’s strong start to this week’s session reinforces current conditions. The cross has cleared resistance at 175.13, the Sep 29 high, to confirm a resumption of the primary uptrend. This maintains the bullish sequence of higher highs and higher lows and opens the 177.00 handle next. On the downside, key short-term support has been defined at 172.27, the Oct 2 low.

• MNI: GERMANY AUG FACTORY ORDERS -0.8% M/M (VS -2.7% JUL)

• RES 4: 151.62 61.8% retracement of the Jan 10 - Apr 22 bear leg
• RES 3: 151.21 High Mar 28 
• RES 2: 150.92 High Aug 1 and a key resistance
• RES 1: 150.48 High Oct 6
• PRICE: 150.48 @ 06:53 BST Oct 7
• SUP 1: 149.05 Low Oct 6 
• SUP 2: 148.10/147.67 20- and 50-day EMA values   
• SUP 3: 146.59 Trendline support drawn from the Apr 22 low 
• SUP 4: 145.49 Low Sept 17

A bullish theme remains intact in USDJPY following Monday's strong start to the week. Yesterday’s rally resulted in a breach of resistance at 149.96, the Sep 26 high and a key short-term resistance. This paves the way for a test of the key medium-term resistance at 150.92, the Aug 1 high. A break of this hurdle would confirm a resumption of the bull leg that started Apr 22. Monday’s intraday low at 149.05 is first support.