EM LATAM CREDIT: Brazil FinMin Meets With Legislature to Discuss Fiscal Policy

• RES 4: 166.34 2.0% 10-dma envelope
• RES 3: 166.10 High Nov 6  
• RES 2: 165.04 High Nov 15 and a key short-term resistance
• RES 1: 164.55 High Jan 7
• PRICE: 161.70 @ 19:37 GMT Jan 10 
• SUP 1: 160.91 Low Jan 2    
• SUP 2: 160.54 50.0% retracement of the Dec 3 - 30 bull cycle   
• SUP 3: 159.51 61.8% retracement of the Dec 3 - 30 bull cycle
• SUP 4: 158.67 Low Dec 11

EURJPY remains below the Dec 30 high. The recent move down appears corrective and a bullish short-term condition is intact, despite the pullback from last week’s high. The next support to watch lies at 160.54, 50.0% of the Dec 3 - 30 bull cycle. The 61.8% level is at 159.51. A resumption of gains would open 165.04, the Nov 15 high. Clearance of this hurdle would expose 166.69, the Oct 31 high and a major resistance.

• RES 4: 160.00 Round number resistance   
• RES 3: 159.45 High Jul 12
• RES 2: 159.26 0.618 proj of the Sep 16 - Nov 15 - Dec 3 price swing  
• RES 1: 158.87 High Jan 10  
• PRICE: 157.90 @ 19:34 GMT Jan 10
• SUP 1: 156.60 20-day EMA
• SUP 2: 154.44 Low Dec 19  
• SUP 3: 154.47 50-day EMA
• SUP 4: 153.16 Low Dec 17  

USDJPY bulls remain in the driver’s seat and the pair is holding on to its recent gains. This week’s fresh cycle high, reinforces the bullish condition. The recent breach of 156.75, the Nov 15 high, confirmed a resumption of the uptrend and has paved the way for a move towards 159.45, the Jul 12 high. Moving average studies are in a bull-mode position highlighting a dominant uptrend. Initial firm support is 156.60, the 20-day EMA.

• RES 4: 0.8471 61.8% retracement of the Aug 8 - Dec 19 downleg
• RES 3: 0.8448 High Oct 31 and reversal trigger   
• RES 2: 0.8424 50.0% retracement of the Aug 8 - Dec 19 downleg
• RES 1: 0.8407 High Jan 9 
• PRICE: 0.8386 @ 19:28 GMT Jan 10
• SUP 1: 0.8315/8284 50-day EMA / Low Jan 8 
• SUP 2: 0.8263 Low Dec 31
• SUP 3: 0.8223 Low Dec 19 
• SUP 4: 0.8203 Low Mar 7 2022 and a major support

EURGBP traded sharply higher last week. The cross has breached resistance at the 50-day EMA, at 0.8311, and cleared the December highs. This undermines the recent bearish theme and suggests scope for a stronger short-term recovery. Note too that 0.8376, the Nov 19 high and a key resistance, has also been cleared. This opens 0.8424, a Fibonacci retracement. Support at the 50-day EMA is at 0.8315.