Chart USD/JPY Update: Choppy trade - background studies under pressure
The break above 159.00 has not been sustained
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 161.00 | congestion | S1 | 158.50 | * | range highs | ||
| R3 | 160.60 | ** | 61.8% ret of Jul-Aug fall | S2 | 158.00 | * | congestion | |
| R2 | 160.00 | * | congestion | S3 | 157.00 | ** | congestion | |
| R1 | 159.50 | * | congestion tops | S4 | 156.60 | ** | 61.8% ret of Jan-Jul rally |
Asterisk denotes strength of level
13:50 BST - The break above 159.00 has not been sustained, as anticipated selling interest beneath resistance at the 159.50 congestion tops pushes prices lower into consolidation above support at 158.50. Overbought daily stochastics are turning down and the positive daily Tension Indicator is flattening, suggesting room for a test of 158.50. However, rising oversold weekly stochastics could limit any immediate break in consolidation above 158.00, before the bearish weekly Tension Indicator prompts fresh losses. Focus will then turn to strong support within the 156.60 - 157.00 range.
Meanwhile, a close above 159.50 will help to improve sentiment and extend August gains beyond 160.00 towards the 160.60 Fibonacci retracement.