Chart USD/JPY Update: Consolidating losses - background studies under pressure
The sharp fall to congestion support at 157.00 is giving way to consolidation
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 160.00 | ** | congestion | S1 | 157.00 | congestion | ||
| R3 | 159.75 | ** | 61.8% ret of Jul-Sep fall | S2 | 156.70 | * | 38.2% ret of Sep rally | |
| R2 | 159.00 | * | congestion | S3 | 155.95/00 | ** | 50% ret; congestion | |
| R1 | 158.00 | ** | congestion | S4 | 155.25 | ** | 61.8% ret of Sep rally |
Asterisk denotes strength of level
08:30 BST - The sharp fall to congestion support at 157.00 is giving way to consolidation, as bearish intraday studies turn mixed, with prices currently balanced around 157.45. Overbought daily stochastics are unwinding, suggesting room for a later break beneath here towards the 156.70 Fibonacci retracement. But the positive daily Tension Indicator is expected to limit any initial tests in fresh consolidation, before mixed/negative weekly charts and bearish longer-term readings prompt a break. A close beneath here will add weight to sentiment and open up stronger support within 155.95/00.
Meanwhile resistance remains at 158.00. A close back above here, if seen, will help to stabilise sentiment and prompt consolidation beneath 159.00.