BTP TECHS: (H5) Support Remains Intact

• RES 4: 165.43 High Nov 8 
• RES 3: 164.90 High Dec 30 and a key short-term resistance  
• RES 2: 164.55 High Jan 7
• RES 1: 164.08 High Jan 24
• PRICE: 162.91 @ 07:10 GMT Jan 27 
• SUP 1: 160.96/159.73 Low Jan 21 / 17 and key short-term support     
• SUP 2: 159.51 61.8% retracement of the Dec 3 - 30 bull cycle   
• SUP 3: 158.67 Low Dec 11
• SUP 4: 158.24 76.4% retracement of the Dec 3 - 30 bull cycle

EURJPY is trading closer to its recent highs. The latest recovery resulted in breach of resistance at 162.89, the Jan 15 high. This undermines a recent bearish theme and highlights scope for an extension higher near term, towards key resistance at 164.90, the Dec 30 high. Key short-term support has been defined at 159.73, the Jan 17 low. A reversal lower and a break of this level would reinstate the recent bearish threat.

Sovereign rating reviews of note from after hours on Friday include:

• Fitch affirmed {NE} the Netherlands at AAA; Outlook Stable
• Moody's upgraded {AR} Argentina to Caa3; outlook positive
• Morningstar DBRS confirmed {BE} Belgium at AA, Stable Trend
• Scope Ratings affirmed {BE} Belgium at AA-; Outlook Negative

Equities continue to trade heavily while core global FI markets and the USD are bid.

• Two key factors drove price action in Asia:
• Heightened tariff worry, with Colombia agreeing to receive deported Colombian immigrants from the U.S. after President Trump made tariff threats towards the country.
• Chinese tech startup DeepSeek driving questions surrounding U.S. tech dominance. The NASDAQ 100 e-mini future is ~2.4% lower at typing.