Chart USD/JPY Update: Sharp pullback
The test of resistance at 148.00 has given way to a sharp fall to congestion support at 145.00
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 149.35 | ** | 50% ret of Jan-Apr fall | S1 | 145.00 | * | congestion | |
| R3 | 148.50 | ** | 76.4% ret of Mar-Apr fall | S2 | 144.00 | * | congestion | |
| R2 | 148.00 | ** | break level | S3 | 142.80 | * | 13 Jun (w) low | |
| R1 | 146.00 | * | break level | S4 | 142.10 | * | 27 May (m) low |
Asterisk denotes strength of level
14:20 BST - The test of resistance at 148.00 has given way to a sharp fall to congestion support at 145.00, where oversold intraday studies are prompting short-term reactions. Overbought daily stochastics are unwinding and the positive daily Tension Indicator is flattening, suggesting a deterioration in sentiment and room for deeper losses in the coming sessions. A break beneath here will add weight to sentiment and open up congestion around 144.00. However, rising weekly charts are expected to limit any tests in fresh consolidation. Meanwhile, a close back above 146.00, not yet seen, will prompt consolidation beneath 148.00