Chart USD/JPY Update: Cautious trade - potential for a minor test lower
The test of support at 146.00 has given way to the anticipated bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 149.35 | ** | 50% ret of Jan-Apr fall | S1 | 146.00 | * | break level | |
| R3 | 148.50 | ** | 76.4% ret of Mar-Apr fall | S2 | 145.00 | * | congestion | |
| R2 | 148.00 | ** | break level | S3 | 144.00 | * | congestion | |
| R1 | 147.00 | minor congestion | S4 | 142.80 | * | 13 Jun (w) low |
Asterisk denotes strength of level
14:00 BST - The test of support at 146.00 has given way to the anticipated bounce, as oversold intraday studies unwind, with prices currently trading around 146.40. Overbought daily stochastics are flattening, suggesting potential for a test below 146.00. But the rising daily Tension Indicator and mixed/positive weekly charts should limit any break in renewed buying interest towards congestion around 145.00. Meanwhile, resistance remains at 147.00. A close above here will open up critical resistance within 148.00 and the 148.50 Fibonacci retracement. A further close above here is needed to turn price action outright positive and confirm continuation of April gains.