Chart USD/JPY Update: Gains to remain limited
Cautious trade above congestion support at 156.00 has given way to a USD-driven bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 160.00 | ** | congestion | S1 | 156.00 | * | congestion | |
| R3 | 158.88 | ** | 10 Jan YTD high | S2 | 155.00 | * | break level | |
| R2 | 157.90/00 | * | 20 Nov (m) high; break level | S3 | 154.34 | * | 5 Dec (w) low | |
| R1 | 157.00 | minor congestion | S4 | 154.00 | * | congestion |
Asterisk denotes strength of level
08:50 GMT - Cautious trade above congestion support at 156.00 has given way to a USD-driven bounce, with prices currently trading around 156.60. Rising intraday studies highlight room for a test of congestion resistance at 157.00. But mixed daily readings and bearish weekly charts are expected to limit any break above here in renewed selling interest beneath strong resistance at the 157.90 monthly high of 20 November and the 158.00 break level. Following corrective trade, fresh losses are looked for. A close below 156.00 will add weight to sentiment and open up 155.00. However, a close below the 154.34 weekly low of 5 December is needed to turn sentiment negative and confirm continuation of late-November losses.