Chart USD/JPY Update: Lower in JPY-dominant trade
Cautious trade around 158.00 has given way to anticipated losses in JPY-dominant trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 160.00 | ** | congestion | S1 | 157.00 | congestion | ||
| R3 | 159.75 | ** | intraday lows | 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
13:45 BST - Cautious trade around 158.00 has given way to anticipated losses in JPY-dominant trade, with prices reaching the 156.70 Fibonacci retracement, before bouncing into consolidation around 157.00. Both intraday and daily studies are bearish, highlighting room for fresh losses, with a later close below 156.70 adding weight to sentiment and completing a distribution top beneath 159.00. Focus will then turn to 155.95/00. By-then oversold daily stochastics could limit any initial tests in consolidation, before deteriorating weekly charts prompt deeper losses.
Meanwhile, resistance is lowered to congestion around 158.00. A close back above here, if seen, will help to stabilise sentiment and prompt fresh consolidation beneath further congestion around 159.00.