BTP TECHS: (Z5) Resistance Remains Exposed

• RES 4: 122.35 2.500 proj of the May 14 - 20 - 21 price swing
• RES 3: 122.00 Round number resistance 
• RES 2: 121.73 High Jun 13 and the bull trigger 
• RES 1: 120.75 High Aug 21
• PRICE: 119.93 @ Close Sep 1
• SUP 1: 119.59 Low Jul 25 and key short-term support         
• SUP 2: 119.48 Low May 26 
• SUP 3: 118.87 Low May 21  
• SUP 4: 118.51 Low May 14 and key support 

The primary trend condition in BTP futures is unchanged and the direction remains up. However, for now, the contract continues to trade inside a broad range and the Aug 15 sell-off signals scope for a move towards the lower end of the range. Key support to watch lies at 119.59, the Jul 25 low. A clear break of this level would highlight a range breakout and a bearish threat. Key resistance is unchanged at 121.73, the Jun 13 high.

• RES 4: 92.06 High Aug 14 
• RES 3: 91.45 High Aug 15      
• RES 2: 91.24 High Aug 18 and a key near-term resistance
• RES 1: 90.84 High Aug 28 / 29 
• PRICE: 90.22 @ Close Sep 1
• SUP 1: 90.20 Low Sep 1
• SUP 2: 90.11 Low May 22 and a key support
• SUP 3: 90.0089.99/ Psychological round number / Low Apr 9 (cont)
• SUP 4: 89.68 Low Jan 15 (cont)       

A bear cycle in Gilt futures is in play and a fresh cycle low Monday, reinforces current conditions. Note that on the continuation chart, moving average studies are in a bear-mode position, highlighting a clear downtrend - for now. A continuation of the bear leg would open the 90.00 handle. Clearance of this level would strengthen the downtrend. Initial resistance is at 90.84, the Aug 28 and 29 high.

• RES 4: 151.62 61.8% retracement of the Jan 10 - Apr 22 bear leg
• RES 3: 150.92 High Aug 1 and a key resistance 
• RES 2: 149.81 76.4% retracement of the Aug 1 - 14 bear leg 
• RES 1: 148.78/149.12 High Aug 22 / 61.8% of the Aug 1 - 14 bear leg  
• PRICE: 147.91 @ 07:01 BST Sep 2
• SUP 1: 146.21 Low Aug 14
• SUP 2: 145.86 Low Jul 24
• SUP 3: 145.40 50% retracement of the Apr - Aug upleg
• SUP 4: 145.19 Trendline drawn from the Apr 22 low 

USDJPY continues to trade inside a range. A bear threat remains present. The short-term bear trigger lies at 146.21, the Aug 14 low. Clearance of this level would resume a downtrend that started early August and pave the way for an extension towards 145.40, a Fibonacci retracement. For bulls, a stronger resumption of gains would instead open 149.12, 61.8% of the Aug 1 - 14 bear leg.