Chart EUR/JPY Update: Edging higher in range
Cautious trade has given way to a break higher in JPY-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 166.00 | * | congestion | S1 | 163.20 | break level | ||
| R3 | 165.00 | * | break level | S2 | 162.00 | * | congestion | |
| R2 | 164.63 | ** | 2 May (w) high | S3 | 161.00 | break level | ||
| R1 | 164.00 | ** | break level | S4 | 160.00 | ** | congestion |
Asterisk denotes strength of level
14:25 BST - Cautious trade has given way to a break higher in JPY-driven trade, with prices reaching 163.65 before settling into consolidation. Oversold daily stochastics have ticked higher, suggesting potential for continuation towards resistance at 164.00. But the flat daily Tension Indicator is expected to limit any initial tests in further consolidation, before rising weekly charts prompt a break. A close above the 164.63 weekly high of 2 May is needed to turn sentiment positive and extend February gains initially towards 165.00. Meanwhile, a close back below 163.20, if seen, will turn sentiment neutral and give way to fresh consolidation above congestion around 162.00.