EURJPY TECHS: Key Medium-Term Support Remains Exposed
- RES 4: 161.35 61.8% retracement of the Dec 30 - Feb 10 bear leg
- RES 3: 161.19 High Feb 13
- RES 2: 159.78 50-day EMA and key short-term resistance
- RES 1: 158.15 20-day EMA
- PRICE: 156.66 @ 16:07 GMT Feb 28
- SUP 1: 154.80 Low Feb 28
- SUP 2: 154.42 Low Aug 5 ‘24 and key medium-term support
- SUP 3: 153.87 Low Dec 14 ‘23
- SUP 4: 152.72 1.00 proj of the Jan 24 - Feb 10 - 13 price swing
A bear threat in EURJPY remains present and today’s print below support at 155.61, the Feb 10 low, reinforces this theme. A continuation lower and a clear breach of the support would expose the key medium-term handle at 154.42, the Aug 5 ‘24 low. Clearance of this level would highlight an important technical break. Initial firm resistance to watch is 158.15, the 20-day EMA. Key resistance is 159.78, the 50-day EMA.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EURJPY TECHS: Outlook Remains Bullish
- 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: 161.56 @ 16:30 GMT Jan 29
- 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
Despite the latest pullback, EURJPY continues to trade closer to last week’s highs. Resistance at 162.89, the Jan 15 high, has been breached. 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 lies at 159.73, the Jan 17 low. A reversal lower and a break of this level would reinstate the recent bearish threat.
FED: Powell Asked on How Far From Neutral the Fed Is
- Powell also won't comment on Trump's comments that he will lower inflation by reducing energy prices.
- Says the Fed's decision to leave the NGFS climate group was because it wasn't the right fit for the Fed, not a political decision.
- Asked how far they are from neutral, Powell says:
- You can't know with any precision, you know it from its works. At 4.3%, we're above pretty much everyone on the Committee's estimate of longer-run neutral rate. Our eyes are telling us that our policy is having effects on the economy. I would say we're meaningfully above neutral - not knowing that and having cut 100bp, it's appropriate that we not be in a hurry to make further adjustments.
FED: Powell Asked on Impact of Immigration Flows Slowing
- Powell asked about the impact of immigration flows slowing down/ deportations:
- Says "there's every reason to expect" decreased flows across the borders to continue, but notes that job creation has also come down "a bit too". "if those two things come down together, that that that sort of can be a reason for the unemployment rate to stabilize. In other words, the breakeven rate that you need in new jobs to make declines as well. So that seems to be something about what's happening. "
- He won't comment on Elon Musk's comment that the Fed is overstaffed.
