Chart EUR/JPY Update: Balanced beneath fresh high - studies rising
The spike to a fresh year high around 177.90 has given way to a pullback
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 182.00 | ** | historic congestion | S1 | 176.00 | * | break level | |
| R3 | 180.00 | ** | historic congestion | S2 | 175.00 | * | congestion | |
| R2 | 178.90 | ** | Sep 1990 high | S3 | 174.00 | ** | congestion | |
| R1 | 178.00 | ** | Jan 1991 (y) high | S4 | 173.25 | * | 3 Oct high, gap low |
Asterisk denotes strength of level
13:40 BST - The spike to a fresh year high around 177.90 has given way to a pullback, as deteriorating intraday studies unwind negative divergence, with prices currently balanced around 177.30. Overbought daily stochastics are flattening, suggesting a cautious tone and room for a test lower. But the positive daily Tension Indicator and improving weekly charts are expected to limit any tests below 177.00 in renewed buying interest towards 176.00. Following cautious trade, fresh gains are looked for. A later break above resistance at the 178.00 year high of January 1991 will improve sentiment and extend gains towards the 178.90 high of September 1990.