Chart USD/JPY Update: Limited tests higher
Cautious trade is giving way to a push higher
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 159.00 | * | congestion | S1 | 156.00 | ** | congestion | |
| R3 | 158.00 | ** | congestion | S2 | 155.40 | ** | 61.8% ret of Feb-Mar rally | |
| R2 | 157.50 | ** | 19 Mar (w) low | S3 | 155.00 | ** | congestion | |
| R1 | 157.00 | break level | S4 | 154.50 | congestion |
Asterisk denotes strength of level
13:40 BST - Cautious trade is giving way to a push higher, with prices once again trading around resistance at 157.00. Oversold daily stochastics are unwinding and the bearish daily Tension Indicator is flattening, suggesting room for a test of resistance at the 157.50 weekly low of 19 March. Just higher is congestion around 158.00. But negative weekly charts should limit any tests of this range in renewed selling interest. Meanwhile, support remains at congestion around 156.00. A later break will open up the 155.40 Fibonacci retracement. A further close beneath here will turn sentiment negative and extend late-April losses initially towards congestion around 155.00.