EURJPY TECHS: Remains Vulnerable

• RES 4: 145.11 Low Oct 27 and a recent breakout level
• RES 3: 143.62 50-day EMA
• RES 2: 142.48 High Nov 11
• RES 1: 142.25 High Nov 21
• PRICE: 141.85 @ 06:45 GMT Nov 22
• SUP 1: 139.64/37.68 Low Nov 18 / 15 and a bear trigger
• SUP 2: 137.37 Low Aug 29
• SUP 3: 135.82 Low Aug 23
• SUP 4: 135.49 76.4% retracement of the Aug 2 - Oct 21 bull leg

Short-term trend conditions in USDJPY remain bearish and Monday’s gais are considered corrective. The move higher is allowing a recent oversold trend condition to unwind. Resistance to watch is at 143.62, the 50-day EMA. A break of this EMA would signal scope for a stronger correction. On the downside, a break of 137.68, Nov 15 low, would resume the downtrend and open 137.37, the Aug 29 low.

• RES 4: 124.35 76.4% retracement of the Aug 11 - Sep 28 bear leg
• RES 3: 121.32 High Aug 25
• RES 2: 120.00 Round number resistance
• RES 1: 119.49 High Nov 21
• PRICE: 118.78 @ Close Nov 21
• SUP 1: 116.05/113.80 20-day EMA / Low Nov 9
• SUP 2: 112.45 Low Nov 8 and a key short-term support
• SUP 3: 112.07/110.14 Low Oct 25 / 14
• SUP 4: 108.82 Low Oct 21

BTP futures traded to a fresh short-term cycle high Monday. The outlook is bullish. The contract has breached 117.93, Oct 27 high plus a key resistance at 119.06, Sep 8 high, has been pierced. A clear break of 119.06 would pave the way for a continuation of the bull cycle and open the 120.00 handle. Initial firm support is seen at 116.05, the 20-day EMA. Key support lies at 112.45, the Nov 8 low. A break below the latter would reinstate a bearish theme.