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(M3) Pre-BoJ Short-Setting Crushed in Sharp Rally

JGB TECHS
  • RES 3: 151.13 - High Mar 3
  • RES 2: 149.75/150.81 - High Nov 11 / High Aug 5
  • RES 1: 147.07/148.79 High Mar 02 / Nov 16
  • PRICE: 146.31 @ 15:56 GMT Mar 10
  • SUP 1: 144.93 - Low Mar 9
  • SUP 2: 144.15 - Low Jan 13
  • SUP 3: 143.86 - 1.0% 10-dma envelope

JGBs rallied sharply into the Friday close, with the unchanged BoJ decision and a global rate re-pricing post-payrolls largely responsible. Weakness headed into the BoJ meeting was wholly reversed, putting prices up at 146.45 ahead of the close. The Mar02 high at 147.07 will need to be broken before the over-arching downtrend can be cracked. Any resumption of weakness would expose next support at the Jan 13 low on the continuation contract at 144.15 for direction.

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