MNI DAILY TECHNICAL ANALYSIS - JPY Gains Highlight The Start Of A Correction
Price Signal Summary - Volatile JPY Enters A Corrective Phase
- In the equity space, the short-term trend condition in S&P E-Minis remains bearish and the latest recovery appears to be a correction. The contract has recently cleared the 50-day EMA, signalling scope for a continuation lower. A resumption of the bear leg would open 4907.57, 50.0% of the Oct 27 ‘23 - Apr 1 bull leg. Firm resistance at 5138.19, the 20-day EMA, has been pierced, a clear break would instead signal a reversal and expose key resistance at 5333.50, the Apr 1 high. EUROSTOXX 50 futures are holding on to their recent gains from 4762.00, the Apr 19 low. The contract has breached the 20-day EMA and resistance at 4990.00, Apr 15 high. This highlights a potentially stronger reversal. A continuation higher would expose the bull trigger at 5079.00, the Apr 2 high. Key support lies at 4762.00. Initial support to watch is 4874.10, the 50-day EMA.
- In FX, EURUSD has pierced resistance at 1.0723, the 20-day EMA. The recent move higher appears to be a correction that is allowing an oversold condition to unwind. A resumption of the downtrend would signal scope for weakness towards 1.0568 next, the Nov 2 2023 low, and 1.0531, the base of a bear channel drawn from the Dec 28 high. A clear break of the 20-day EMA would instead signal scope for a stronger recovery. The 50-day EMA is at 1.0777. The trend condition in GBPUSD remains bearish, however, a corrective cycle is in play for now and this is allowing an oversold condition to unwind. Moving average studies are in a bear-mode set-up and the recent break lower, maintains the downward price sequence of lower lows and lower highs. A resumption of weakness would open 1.2266, the Nov 14 2023 low. Resistance to watch is 1.2580, the 50-day EMA. The USDJPY trend condition remains bullish, however, today’s session has been volatile. An early rally stopped short of a resistance at 160.20, the Apr 1990 high before reversing lower. Note that the trend condition is overbought. A deeper retracement would allow the overbought set-up to unwind. Initial key support to watch lies at 154.01, the 20-day EMA. The 50-day EMA lies at 151.91.
- On the commodity front, Gold remains in consolidation mode and is trading closer to its recent lows. The precious metal last week pierced the 20-day EMA and this highlights the start of a possible corrective cycle. A continuation lower would signal scope for an extension towards $2233.6, the 50-day EMA. Note that a short-term bear cycle would allow a significant overbought condition to unwind. Key resistance and the bull trigger is at $2431.5, the recent Apr 12 high. In the oil space, WTI futures continue to trade above key short-term support at $81.14, the 50-day EMA. The recent move down between Apr 12 - 22, highlights a corrective phase and a clear break of the 50-day average would signal scope for a deeper retracement towards $76.07, the Mar 11 low. On the upside, key resistance and the bull trigger has been defined at $86.97, the Apr 12 high.
- In the FI space, the trend outlook in Bund futures is unchanged and remains bearish. The contract traded to fresh cycle lows last week, confirming once again a resumption of the downtrend. Sights are on 129.26, the 1.618 projection of the Mar 8 - 18 - 27 price swing. First resistance is at 131.37, the 20-day EMA. A bearish theme in Gilt futures remains intact. Last Wednesday’s break of support at 96.01, the Apr 17 low, confirms a resumption of the downtrend. Furthermore, moving average studies have recently crossed, highlighting a bear-mode set-up. Scope is seen for a move towards the 95.00 handle next. Initial firm resistance is 97.23, the 20-day EMA.
FOREIGN EXCHANGE
EURUSD TECHS: Corrective Cycle Remains In Play
- RES 4: 1.0943 High Mar 21
- RES 3: 1.0885 High Apr 09
- RES 2: 1.0777 50-day EMA
- RES 1: 1.0723/53 20-day EMA / High Apr 26
- PRICE: 1.0732 @ 06:13 BST Apr 29
- SUP 1: 1.0601 Low Apr 16
- SUP 2: 1.0568 Low Nov 2 ‘23
- SUP 3: 1.0531 Base of a bear channel drawn from the Dec 28 high
- SUP 4: 1.0517 Low Nov 1 ‘23
EURUSD has pierced resistance at 1.0723, the 20-day EMA. The recent move higher appears to be a correction that is allowing an oversold condition to unwind. A resumption of the downtrend would signal scope for weakness towards 1.0568 next, the Nov 2 2023 low, and 1.0531, the base of a bear channel drawn from the Dec 28 high. A clear break of the 20-day EMA would instead signal scope for a stronger recovery. The 50-day EMA is at 1.0777.
GBPUSD TECHS: Corrective Phase Remains In Play
- RES 4: 1.2803 High Mar 21
- RES 3: 1.2709 High Apr 09
- RES 2: 1.2580 50-day EMA values
- RES 1: 1.2549 Intraday high
- PRICE: 1.2541 @ 06:35 BST Apr 27
- SUP 1: 1.2423/2300 Low Apr 24 / 22 and the bear trigger
- SUP 2: 1.2266 Low Nov 14 ‘23
- SUP 3: 1.2239 76.4% retracement of the Oct 4 - Mar 8 bull leg
- SUP 4: 1.2187 Low Nov 10
The trend condition in GBPUSD remains bearish, however, a corrective cycle remains in play for now. The move higher is allowing an oversold condition to unwind. Moving average studies remain in a bear-mode set-up and the recent break lower, maintains the downward price sequence of lower lows and lower highs. A resumption of weakness would open 1.2266, the Nov 14 2023 low. Resistance to watch is 1.2580, the 50-day EMA.
EURGBP TECHS: Has Pierced Support At The 50-Day EMA
- RES 4: 0.8704 76.4% retracement of the Nov 20 - Feb 14 bear cycle
- RES 3: 0.8683 High Jan 2
- RES 2: 0.8665 61.8% retracement of the Nov 20 - Feb 14 bear cycle
- RES 1: 0.8600/45 High Apr 24 / 23
- PRICE: 0.8556 @ 06:59 BST Apr 29
- SUP 1: 0.8549 Intraday low
- SUP 2: 0.8521/8504 Low Apr 17 / Low Mar 8
- SUP 3: 0.8498/93 Low Feb 14 / Low Aug 23 2023 and key support
- SUP 4: 0.8454 76.4% of the Mar 7 - Sep 26 ‘23 bull phase
The S/T trend condition in EURGBP remains bullish and the latest pullback appears to be a correction. A strong rally on Apr 19, resulted in a break of 0.8602, Mar 22 high and a key resistance. This confirmed a range breakout and a resumption of the bull cycle that started Feb 14. This has opened 0.8665, a Fibonacci retracement. Support at 0.8567, the 50-day EMA, has been pierced. A clear break would be bearish and open 0.8521, Apr 17 low.
USDJPY TECHS: Volatile And Enters A Retracement Mode
- RES 4: 160.17/20 Intraday high / High Apr 1990
- RES 3: 159.55 2.618 proj of the Feb 1 - 13 - Mar 8 price swing
- RES 2: 158.97 2.50 proj of the Feb 1 - 13 - Mar 8 price swing
- RES 1: 158.44 HIgh Apr 26
- PRICE: 155.84 @ 10:17 BST Apr 29
- SUP 1: 154.54 Intraday low
- SUP 2: 154.01/151.91 20- and 50-day EMA values
- SUP 3: 150.81 Low Apr 5
- SUP 4: 150.27 Low Mar 21
The USDJPY trend condition remains bullish, however, today’s session has been volatile. An early rally stopped short of a resistance at 160.20, the Apr 1990 high before reversing lower. Note that the trend condition is overbought. A deeper retracement would allow the overbought set-up to unwind. Initial key support to watch lies at 154.01, the 20-day EMA. The 50-day EMA lies at 151.91.
EURJPY TECHS: Corrective Phase
- RES 4: 171.64 2.00 proj of the Jan 1 - 19 - Feb 1 price swing
- RES 3: 171.56 Intraday high
- RES 2: 170.04 1.764 proj of the Jan 1 - 19 - Feb 1 price swing
- RES 1: 169.39 High Apr 26
- PRICE: 166.70 @ 10:18 BST Apr 29
- SUP 1: 165.66 Intraday low
- SUP 2: 165.14 20-day EMA
- SUP 3: 164.22 Trendline drawn from the Dec 7 ‘23 low
- SUP 4: 163.69 50-day EMA
The EURJPY trend condition remains bullish however a sharp rally followed by a strong reversal, signals scope for a deeper retracement near-term. A bear cycle would allow an overbought trend condition to unwind. Initial support to watch lies at 165.14, the 20-day EMA. Key trendline support lies at 164.22 remains intact. The line is drawn from the Dec 7 ‘23 low and a clear break of it is required to signal a short-term reversal.
AUDUSD TECHS: Bull Cycle Extends
- RES 4: 0.6668 High Mar 8
- RES 3: 0.6644 High Apr 9 and a key resistance
- RES 2: 0.6617 50.0% retracement of the Dec 28 - Apr 19 bear leg
- RES 1: 0.6587 Intraday high
- PRICE: 0.6554 @ 07:56 BST Apr 29
- SUP 1: 0.6441/6363 Low Apr 23 / 19 and the bear trigger
- SUP 2: 0.6339 Low Nov 10 and a key support
- SUP 3: 0.6315 Low Oct 31 ‘23
- SUP 4: 0.6270 Low Oct 26 ‘23 and a key support
The current bullish phase in AUDUSD remains intact and the pair has traded higher today. Resistance at 0.6526, the 50-day EMA, has been breached and the clear break highlights a stronger reversal that signals scope for a cimb towards 0.6644, the Apr 9 high. A reversal lower would instead refocus attention on 0.6363, the Apr 19 low and a bear trigger. Clearance of this support would resume the recent downtrend.
USDCAD TECHS: Watching Support At The 50-Day EMA
- RES 4: 1.3899 High Nov 1 and a key resistance
- RES 3: 1.3855 High Nov 10 2023
- RES 2: 1.3804/46 High Apr 19 / 16
- RES 1: 1.3763 High Apr 22
- PRICE: 1.3658 @ 08:00 BST Apr 29
- SUP 1: 1.3632 Intraday low
- SUP 2: 1.3607 50-day EMA
- SUP 3: 1.3547 Low Apr 9
- SUP 4: 1.3478 Low Apr 4
USDCAD is trading closer to last week’s low. A bullish trend condition remains intact and the most recent pullback appears to be a correction - for now. The pair has recently cleared resistance at 1.3614, the Mar 19, 22, 25 and 29 highs. This opens 1.3855 next, the Nov 10 ‘23 high. Note that moving average studies remain in a bull-mode position, highlighting a clear rising trend. Key support to watch lies at the 50-day EMA, at 1.3607.
FIXED INCOME
BUND TECHS: (M4) Trend Needle Points South
- RES 4: 134.15 High Mar 8 and a bull trigger
- RES 3: 133.48 High Mar 27
- RES 2: 133.05 High Apr 12
- RES 1: 131.37 20-day EMA
- PRICE: 130.28 @ 05:23 BST Apr 29
- SUP 1: 129.53 Low Apr 25
- SUP 2: 129.26 1.618 proj of the Mar 8 - 18 - 27 price swing
- SUP 3: 129.00 Round number support
- SUP 4: 128.88 1.764 proj of the Mar 8 - 18 - 27 price swing
The trend outlook in Bund futures is unchanged and remains bearish. The contract traded to fresh cycle lows last week, confirming once again a resumption of the downtrend. Key support at 131.23, the Feb 29 low, has recently been cleared. Sights are on 129.26, a Fibonacci projection. On the upside, firm resistance is at 133.05, the Apr 12 high. Short-term gains are considered corrective. First resistance is at 131.37, the 20-day EMA.
BOBL TECHS: (M4) Trend Direction Remains Down
- RES 4: 118.460 High Mar 12
- RES 2: 118.100/118.310 High Apr 12 / High Mar 27
- RES 3: 117.620 High APr 19
- RES 1: 117.237 20-day EMA
- PRICE: 116.610 @ 05:50 BST Apr 29
- SUP 1: 116.270 Low Apr 25
- SUP 2: 116.135 1.50 proj of the Mar 8 - 18 - 27 price swing
- SUP 3: 115.964 1.618 proj of the Mar 8 - 18 - 27 price swing
- SUP 4: 115.752 1.764 proj of the Mar 8 - 18 - 27 price swing
The downtrend in Bobl futures remains intact and the contract traded to a fresh cycle low last week. Key support at 117.200, the Feb 29 low, has recently been cleared, strengthening the bearish theme and fresh trend lows last week confirm a continuation of the downtrend. Sights are on 116.135, a Fibonacci projection. First resistance is 117.237, 20-day EMA. Gains are considered corrective.
SCHATZ TECHS: (M4) Bears Remain In The Driver’s Seat
- RES 4: 105.790 High Mar 25 and key resistance
- RES 3: 105.680 High Apr 12
- RES 2: 105.525 High Apr 19
- RES 1: 105.434/680 20-day EMA / High Apr 12
- PRICE: 105.160 @ 05:46 BST Apr 26
- SUP 1: 105.140 Low Apr 25 and 26
- SUP 2: 105.106 1.382 proj of the Mar 8 - 18 - 25 price swing
- SUP 3: 105.047 1.50 proj of the Aug 8 - Mar 18 - Mar 25 price swing
- SUP 4: 105.000 Round number support
The trend condition in Schatz futures is unchanged and remains bearish. The recent break of support at 105.490, the Feb 29 low and bear trigger, confirmed a resumption of the downtrend that started late December last year. Last week’s fresh trend lows reinforce current conditions and sights are on 105.106, a Fibonacci projection. Key resistance has been defined at 105.790, the Mar 25 high. Initial firm resistance is 105.458, the 20-day EMA.
GILT TECHS: (M4) Bearish Trend Sequence Remains Intact
- RES 4: 100.05 High Mar 22
- RES 3: 99.37 High Apr 4
- RES 2: 99.10 High Apr 10
- RES 1: 97.23/98.23 20-day EMA / High Apr 12
- PRICE: 96.08 @ Close Apr 26
- SUP 1: 95.36 Low Apr 25
- SUP 2: 95.00 Round number support
- SUP 3: 94.86 2.236 proj of the Mar 12 - 15 - 22 price swing
- SUP 4: 94.52 2.382 proj of the Mar 12 - 15 - 22 price swing
A bearish theme in Gilt futures remains intact. Last Wednesday’s break of support at 96.01, the Apr 17 low, confirms a resumption of the downtrend and maintains the bearish price sequence of lower lows and lower highs. Furthermore, moving average studies have recently crossed, highlighting a bear-mode set-up. Scope is seen for a move towards the 95.00 handle next. Initial firm resistance is 97.23, the 20-day EMA.
BTP TECHS: (M4) Support Remains Exposed
- RES 4: 120.65 High Dec 27 and the bull trigger
- RES 3: 120.28 High Mar 14
- RES 2: 119.55 High Mar 27
- RES 1: 117.69/119.10 50-day EMA / High Apr 10
- PRICE: 117.13 @ 07:02 BST Apr 29
- SUP 1: 115.76 Low Apr 25
- SUP 2: 115.70 Low Dec 8 ‘23 (cont)
- SUP 3: 114.74 1.236 proj of the Dec 27 - Feb 22 - Mar 14 price swing
- SUP 4: 114.09 1.382 proj of the Dec 27 - Feb 22 - Mar 14 price swing
A bearish threat in BTP futures remains present and last week’s move lower reinforces this theme. The break lower resulted in a breach of key support at 116.15, the Feb 22 low and a bear trigger. A clear break of this level would highlight an important bearish development and open 115.70 initially, the Dec 8 2023 low (cont). Key short-term resistance to watch is 119.10, the Mar 27 high. Short-term gains are considered corrective.
US 10YR FUTURE TECHS: (M4) Trend Direction Remains Down
- RES 4: 110-06 High Apr 4
- RES 3: 109-26+ High Apr 10
- RES 2: 109-19+ 50-day EMA
- RES 1: 108-18+ 20-day EMA
- PRICE: 107-18 @ 16:23 BST Apr 26
- SUP 1: 107-04 Low Apr 25
- SUP 2: 106-27 2.764 proj of Dec 27 - Jan 19 - Feb 1 price swing
- SUP 3: 106-16 Base of a bear channel drawn from the Feb 1 low
- SUP 4: 106-08 3.00 proj of Dec 27 - Jan 19 - Feb 1 price swing
The trend outlook in Treasuries is unchanged and the direction remains down. The contract traded to a fresh cycle low Thursday. Moving average studies are in a bear-mode set-up too, highlighting a clear downtrend. Note also that the recent consolidation appears to have been a flag formation - a bearish continuation pattern. Sights are on 106-27 next, a Fibonacci projection. Firm resistance is 108-18+, the 20-day EMA.
EQUITIES
EUROSTOXX50 TECHS: (M4) Holding On To Recent Gains
- RES 4: 5127.70 1.382 proj of the Jan 17 - Feb 12 - 13 price swing
- RES 3: 5079.00 High Apr 2 and the bull trigger
- RES 2: 5043.00 High Apr 4
- RES 1: 5003.00 High Apr 24
- PRICE: 5001.00 @ 06:28 BST Apr 29
- SUP 1: 4874.10/4862.00 50-day EMA / Low Apr 24
- SUP 2: 4762.00 Low Apr 19 and the bear trigger
- SUP 3: 4711.00 Low Feb 19
- SUP 4: 4700.00 Round number support
Eurostoxx 50 futures are holding on to their recent gains from 4762.00, the Apr 19 low. The contract has breached the 20-day EMA and resistance at 4990.00, Apr 15 high. This highlights a potentially stronger reversal and signals the end of the correction between Apr 2 - 19. A continuation higher would expose the bull trigger at 5079.00, the Apr 2 high. Key support lies at 4762.00. Initial support to watch is 4874.10, the 50-day EMA.
E-MINI S&P TECHS: (M4) Watching Resistance At The 20-Day EMA
- RES 4: 5333.50 High Apr 1 and the bull trigger
- RES 3: 5285.00 High Apr 10
- RES 2: 5213.25 High Apr 15
- RES 1: 5138.19/5147.00 20-day EMA / Intraday high
- PRICE: 4143.75 @ 07:17 BST Apr 29
- SUP 1: 4963.50 Low Apr 19 and the bear trigger
- SUP 2: 4907.57 50.0% retracement of the Oct 27 ‘23 - Apr 1 bull leg
- SUP 3: 4863.75 Low Jan 19
- SUP 4: 4799.50 Low Jan 17
The S/T trend condition in S&P E-Minis remains bearish and the latest recovery appears to be a correction. The contract has recently cleared the 50-day EMA, signalling scope for a continuation lower. A resumption of the bear leg would open 4907.57, a Fibonacci retracement. Firm resistance at 5138.19, the 20-day EMA, has been pierced, a clear break would instead signal a reversal and expose key resistance at 5333.50, the Apr 1 high.
COMMODITIES
BRENT TECHS: (N4) Key Short-Term Support Remains Intact
- RES 4: $95.18 - 2.382 proj of the Jan 3 - 29 - Feb 5 price swing
- RES 3: $94.00 - 2.236 proj of the Jan 3 - 29 - Feb 5 price swing
- RES 2: $92.09 - 2.00 proj of the Jan 8 - 29 - Feb 5 price swing
- RES 1: $91.18 - High Apr 12 and the bull trigger
- PRICE: $87.55 @ 06:56 BST Apr 29
- SUP 1: $85.88 - 50-day EMA
- SUP 2: $80.56 - 61.8% retracement of the Dec 13 - Apr 12 bull cycle
- SUP 3: $76.18 - Low Feb 5
- SUP 4: $72.38 Low Dec 13 and a key support
Brent futures remain above recent lows and key support at $85.25, the 50-day EMA. The recent move down highlights the start of a corrective cycle. A clear break of the 50-day EMA is required to signal scope for a deeper retracement that would open $80.24, a Fibonacci retracement. Key resistance and the bull trigger has been defined at $91.18, the Apr 12 high. Clearance of this level would resume the uptrend.
WTI TECHS: (M4) Pivot Support Remains Intact For Now
- RES 4: $91.24 - 2.382 proj of the Jan 3 - 29 - Feb 5 price swing
- RES 3: $90.00 - Psychological round number
- RES 2: $88.07 - 2.00 proj of the Jan 3 - 29 - Feb 5 price swing
- RES 1: $86.97 - High Apr 12 and the bull trigger
- PRICE: $83.18 @ 07:10 BST Apr 29
- SUP 1: $81.14 - 50-day EMA
- SUP 2: $76.07 - Low Mar 11
- SUP 3: $71.47 Low Feb 5
- SUP 4: $70.11 - Low Jan 3
WTI futures continue to trade above key short-term support at $81.14, the 50-day EMA. The recent move down between Apr 12 - 22, highlights a corrective phase and a clear break of the 50-day average would signal scope for a deeper retracement towards $76.07, the Mar 11 low. On the upside, key resistance and the bull trigger has been defined at $86.97, the Apr 12 high. A break would resume the uptrend.
GOLD TECHS: Bear Threat Remains Present
- RES 4: $2500.0 - Round number resistance
- RES 3: $2481.5 - 1.764 proj of the Oct 6 - 27 - Nov 13 price swing
- RES 2: $2452.5 - 2.618 proj of the Oct 6 - 27 - Nov 13 price swing
- RES 1: $2431.5 - High Apr 12 and the bull trigger
- PRICE: $2331.2 @ 07:10 BST Apr 29
- SUP 1: $2291.6 - Low Apr 23
- SUP 2: $2233.6 - 50-day EMA
- SUP 3: $2146.2 - Low Mar 18 and key short-term support
- SUP 4: $2088.5 - High Dec 28
Gold remains in consolidation mode and is trading closer to its recent lows. The precious metal last week pierced the 20-day EMA and this highlights the start of a possible corrective cycle. A continuation lower would signal scope for an extension towards $2233.6, the 50-day EMA. Note that a short-term bear cycle would allow a significant overbought condition to unwind. Key resistance and the bull trigger is at $2431.5, the recent Apr 12 high.
SILVER TECHS: Short-Term Trend Set-Up Remains Bearish
- RES 4: $30.912 - 3.00 proj of the Oct 3 - 20 - Nov 13 price swing
- RES 3: $30.100 - Feb 2021 high and a key resistance
- RES 2: $30.000 - Psychological round number
- RES 1: $28.936/29.797 - High Apr 19 / 12
- PRICE: $27.191 @ 08:04 BST Apr 29
- SUP 1: $26.668 - Low Apr 23
- SUP 2: $25.935/24.328 - 50-day EMA / Low Mar 27
- SUP 3: $22.277 - Low Feb 28
- SUP 4: $21.928 - Low Jan 22 and a key support
A sharp sell-off in Silver on Apr 22 highlights the start of a corrective cycle. The metal has traded through the 20-day EMA and an extension lower would signal scope for a move towards $25.935, the 50-day EMA. Note that a pullback is allowing an overbought trend condition to unwind. A break of the 50-day EMA is required to strengthen a bearish threat. On the upside, key resistance and the bull trigger is at $29.797, the Apr 12 high.