Chart USD/JPY Update: Sharp break higher in USD- and JPY-driven trade
Cautious trade has given way to a sharp USD- and JPY-driven break higher
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 161.35 | ** | 76.4% ret of Jul-Sep fall | S1 | 159.00 | * | congestion | |
| R3 | 160.40 | ** | 2 Sep (m) high | S2 | 158.00 | ** | congestion | |
| R2 | 160.00 | ** | congestion | S3 | 157.50 | congestion | ||
| R1 | 159.75 | ** | 61.8% ret of Jul-Sep fall | S4 | 157.00 | * | congestion |
Asterisk denotes strength of level
13:40 GMT - Cautious trade has given way to a sharp USD- and JPY-driven break higher, with focus turning to resistance at the 159.75 Fibonacci retracement. Daily readings are turning higher and broader weekly charts are also positive, suggesting room for continuation beyond here towards congestion around 160.00. Just higher is the 160.40 monthly high of 2 September. But daily stochastics are already approaching overbought areas, suggesting any immediate tests of this 160.00 - 160.40 range could be limited in profit-taking/consolidation.
Meanwhile, support is raised to congestion around 159.00. A close beneath here would help to stabilise price action and give way to consolidation/range extension above further congestion around 158.00.