Chart USD/JPY Update: Turning away from multi-year highs
Consolidation around 162.50 has given way to a sharp pullback in both USD- and JPY-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 163.00 | * | historic congestion | S1 | 161.00 | * | intraday lows | |
| R3 | 162.85~ | ** | 1 July multi-year high | S2 | 160.72 | * | 30 Apr (m) high | |
| R2 | 162.50 | historic congestion | S3 | 160.00 | ** | congestion | ||
| R1 | 162.00 | * | congestion | S4 | 159.50~ | * | 11 Jun (w) low |
Asterisk denotes strength of level
14:00 BST - Consolidation around 162.50 has given way to a sharp pullback in both USD- and JPY-driven trade, with prices reaching 161.00 before settling into consolidation around 161.25. Overbought daily stochastics are unwinding and the daily Tension Indicator is also under pressure, highlighting room for further losses in the coming sessions. A close beneath here will add weight to sentiment and extend the pullback from the 162.85~ multi-year high of 1 July below the 160.72 monthly high of 30 April towards congestion around 160.00. Meanwhile, resistance is at congestion around 162.00. A close above here would help to stabilise price action. But a further close above 162.85~ would turn sentiment positive and extend long-term gains beyond 163.00 towards the 163.95 high of December 1986.