USDJPY TECHS: Trend Needle Points South

• RES 4: 5335.43 1.618 proj of the Nov 21 - Dec 9 - 20 price swing
• RES 3: 5327.90 1.764 proj of the Dec 20 - Jan 8 - 13 price swing      
• RES 2: 5298.50 1.500 proj of the Nov 21 - Dec 9 - 20 price swing
• RES 1: 5276.00 High Jan 24          
• PRICE: 5257.00 @ 06:28 GMT Jan 28  
• SUP 1: 5144.00 Low Jan 27           
• SUP 2: 5108.69 20-day EMA    
• SUP 3: 5021.12 50-day EMA
• SUP 4: 4931.00 Low Jan 13 and a key short-term support  

A bull cycle in the Eurostoxx 50 futures contract remains intact and the move lower from last Friday’s high, appears to have been a correction. A deeper retracement would allow an overbought trend condition to unwind. Moving average studies are in a bull-mode set-up highlighting a dominant uptrend. The first important support to watch is 5108.69, the 20-day EMA. A resumption of the uptrend would open 5298.50, a Fibonacci projection.

Greece and Italy are both due to sell bills this week, whilst Germany, France and Austria have already issued this week. We expect issuance to be E19.3bln in first round operations, down from E20.1bln last week.

• Today, Greece will sell E500mln of the new 13-week May 2, 2025 GTB.
• Also today, Italy will issue E6.5bln of the new 6-month Jul 31, 2025 BOT.

For more on future auctions see the full MNI Eurozone/UK T-bill auction calendar here.

• 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: 0.8421/8474 High Jan 27 / 20 and the bull trigger 
• PRICE: 0.8382 @ 06:29 GMT Jan 29
• SUP 1: 0.8387/80 20-day EMA / Low Jan 28
• SUP 2: 0.8357 50-day EMA
• SUP 3: 0.8284 Low Jan 8
• SUP 4: 0.8263 Low Dec 31

EURGBP traded lower on Tuesday, extending the correction that started on Jan 20. A bull cycle is intact. Moving average studies are in a bull-mode position, highlighting a dominant short-term uptrend. Support levels to watch are; 0.8387, the 20-day EMA (pierced), and 0.8357, the 50-day EMA. A clear breach of this support zone would highlight a stronger reversal. The bull trigger is 0.8474, the Jan 20 high. A breach of it would resume the uptrend.