FED: FOMC Minutes: More QT Discussion Than Anticipated
The first thing that stands out in the January FOMC minutes was the surprising amount of balance she...
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USDJPY TECHS: Support At The 50-Day EMA Remains Intact
- RES 4: 159.45 High Jul 12
- RES 3: 159.26 0.618 proj of the Sep 16 - Nov 15 - Dec 3 price swing
- RES 2: 158.08/87 High Jan 15 / 10 and the bull trigger
- RES 1: 156.66 20-day EMA
- PRICE: 155.64 @ 16:47 GMT Jan 20
- SUP 1: 154.97 50-day EMA
- SUP 2: 154.44 Low Dec 19
- SUP 3: 154.16Trendline support drawn from the Sep 16 ‘24 low
- SUP 4: 153.16 Low Dec 17
The trend condition in USDJPY is unchanged, it remains bullish and last week’s move lower appears corrective - for now. The pair has traded through the 20-day EMA and an extension lower would signal scope for a deeper retracement. Support to watch is 154.97, the 50-day EMA. A return higher and a breach of 158.87, the Jan 10 high, would confirm a resumption of the uptrend and open 159.45, the Jul 12 ‘24 high.
UK: Gov't Rejects Unionist Calls For Pulling 'Stormont Brake'
The UK gov't has confirmed that it has rejected a request from unionist parties in Northern Ireland to invoke the post-Brexit 'Stormont brake'. The 'Stormont brake' permits members of the legislative assembly (MLAs) at Stormont to object to EU laws if they see them as having a "significant impact specific to everyday life of communities in Northern Ireland in a way that is liable to persist". A motion from the hardline unionist Democratic Unionist Party (DUP) was backed by all unionist MLAs claiming that changes to EU rules on packaging and labelling of chemicals would have a "significant and prolonged" impact in Northern Ireland and that they would not be required in the rest of the UK.
- Secretary of State for Northern Ireland Hillary Benn, in a letter to Speaker of the Assembly Edwin Poots, said that the new rules did not reach the threshold for implementing the brake.
- DUP leader Gavin Robinson said the decision was 'wrong' and 'utter foolishness.' As Sky News reports, "If the brake had been pulled, there would have been unprecedented and intensive talks between the UK and EU, and possibly a vote on the rules applying in Stormont. It would undoubtedly have torn the scab off some of the old Brexit wounds, at a time when Sir Keir Starmer's government has much more pressing matters to attend to. It didn't happen this time…but it's unlikely unionists will be deterred from trying again in the future."
EURGBP TECHS: Trend Needle Points North
- RES 4: 0.8545 High Aug 21
- RES 3: 0.8530 76.4% retracement of the Aug 8 - Dec 19 downleg
- RES 2: 0.8494 High Aug 26 ‘24
- RES 1: 0.8474 High Jan 20
- PRICE: 0.8454 @ 16:46 GMT Jan 20
- SUP 1: 0.8403/8355 Low Jan 16 / 20-day EMA
- SUP 2: 0.8336/8284 50-day EMA / Low Jan 8
- SUP 3: 0.8263 Low Dec 31
- SUP 4: 0.8223 Low Dec 19
EURGBP maintains a firmer tone and the cross traded to a fresh short-term cycle high Monday. The latest recovery undermines the recent bearish theme and suggests scope for stronger short-term gains. Recent resistance points at 0.8376, the Nov 19 high, and 0.8448, the Oct 31 high, have been breached, strengthening the current bullish theme. Sights are on 0.8494 next, the Aug 26 ‘24 high. Support at the 50-day EMA is at 0.8336.
