Chart USD/JPY Update: Sharp pullback in USD- and JPY-driven trade
Consolidation beneath congestion resistance at 159.00 is giving way to a steady pullback in both USD- and JPY-driven trade
| 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
14:00 BST - Consolidation beneath congestion resistance at 159.00 is giving way to a steady pullback in both USD- and JPY-driven trade, with the break below 158.00 adding weight to sentiment and putting focus on congestion support at 157.00. Intraday studies are bearish and overbought daily stochastics are unwinding, highlighting room for continuation beneath here towards the 156.70 Fibonacci retracement. But the rising daily Tension Indicator and mixed weekly charts could limit any initial tests in short-covering/consolidation, before further losses unfold.
Meanwhile resistance is lowered to 158.00. A close back above here, if seen, will help to stabilise sentiment and prompt consolidation beneath 159.00.