Chart USD/JPY Update: Potential for a minor corrective bounce
Cautious trade has given way to a break above 148.00
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 152.00 | * | break level | S1 | 148.00 | * | congestion | |
| R3 | 151.00 | * | break level | S2 | 147.00 | ** | 61.8% ret of Sep-Jan rally | |
| R2 | 150.00 | ** | congestion | S3 | 146.00 | * | congestion | |
| R1 | 149.00 | congestion | S4 | 145.00 | congestion |
Asterisk denotes strength of level
14:00 GMT - Cautious trade has given way to a break above 148.00, with prices testing above congestion resistance at 149.00 before settling back, as overbought intraday studies unwind. Daily stochastics are turning higher, unwinding oversold areas, and the daily Tension Indicator is also turning up, suggesting room for further gains in the coming sessions. A break above 149.00 will open up further congestion around 150.00. But mixed/negative weekly charts could limit any initial tests in renewed consolidation. Meanwhile, support remains down to the 147.00 Fibonacci retracement. A close beneath here, not yet seen, would add weight to sentiment and extend January losses initially towards congestion around 146.00.