FX January 03, 2019 / 11:25 am UTC

Chart GBP/JPY Update: Volatile trade giving way to consolidation. Sentiment remains negative

By Mike Macdonald
-- Level Comment -- Level Comment
R1 137.20/25 break area S1 133.85 intraday low
R2 140.00 ** major break level S2 132.28 * intraday low
R3 141.15 10-Dec low S3 130.00 ** Jun-Nov 2016 congestion
R4 142.10 20-Dec high S4 128.00 congestion

Asterisk denotes strength of level

11:15 GMT - The sharp overnight drop has bounced smartly from 132.28, as oversold intraday momentum studies unwind. Gains, however, are expected to prove difficult to maintain, as both daily and weekly readings continue to point lower. Risk is for consolidation to turn down, with a break below the 133.85 intraday low opening up 132.28. Further slippage beneath here will target significant congestion around 130.00. Resistance is at the 137.20/25 break area. However, a close above 140.00 is needed to confirm a significant low in place.

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