Published: 2024-12-19T11:44:02.000Z
Chart EUR/JPY Update: Extending December gains in JPY-driven trade
Senior Technical Strategist
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Cautious trade around 161.50 has given way to a sharp JPY-driven bounce
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 166.00 | * | congestion | S1 | 162.00 | * | congestion | |
R3 | 165.00 | * | congestion | S2 | 161.00 | break level | ||
R2 | 164.20 | ** | 76.4% ret of Oct-Dec fall | S3 | 160.00 | * | congestion | |
R1 | 164.00 | * | congestion | S4 | 158.00 | * | congestion |
Asterisk denotes strength of level
11:30 GMT - Cautious trade around 161.50 has given way to a sharp JPY-driven bounce, with prices reaching 163.65 before settling lower to 163.20. Intraday studies have turned positive and the daily Tension Indicator continues to rise, suggesting room for continuation towards strong resistance at congestion around 164.00 and the 164.20 Fibonacci retracement. However, flat overbought daily stochastics are expected to limit any immediate tests of this area in consolidation, before rising weekly charts prompt a break and extend December gains still further. Meanwhile, support is down to congestion around 162.00. A close beneath here is needed to turn price action neutral once again and prompt consolidation above 161.00.