Chart EUR/JPY Update: Cautious trade - daily studies leaning lower
Little change, as prices extend consolidation beneath resistance at the 166.00 break level
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 168.00 | ** | break level | S1 | 165.00 | ** | congestion | |
| R3 | 167.40 | ** | 61.8% ret of Jul-Aug fall | S2 | 163.89 | ** | 15 Aug (m) high | |
| R2 | 166.68 | * | 31 Oct (m) high | S3 | 163.00 | congestion | ||
| R1 | 166.00 | ** | break level | S4 | 162.00 | congestion |
Asterisk denotes strength of level
09:40 GMT - Little change, as prices extend consolidation beneath resistance at the 166.00 break level. Oversold intraday studies are unwinding, suggesting potential for a test above here. But negative daily readings are expected to limit scope in renewed selling interest towards the 166.68 monthly high of 31 October. Broader weekly charts are positive, but a close above here is needed to turn sentiment positive and extend August gains towards the 167.40 Fibonacci retracement. Meanwhile, support remains at congestion around 165.00. A close beneath here would add weight to sentiment and prompt a pullback towards the 163.89 monthly high of 15 August. However, rising weekly charts could limit any initial tests in fresh buying interest.