Chart USD/JPY Update: Corrective USD- and JPY-driven bounce
Consolidation has given way to a steady USD- and JPY-driven bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 158.00 | ** | congestion | S1 | 154.50 | minor congestion | ||
| R3 | 156.75 | * | 4 Sep high | S2 | 154.00 | * | congestion | |
| R2 | 156.00 | * | congestion | S3 | 152.90 | * | 8 Sep (w) low | |
| R1 | 155.00/25~ | ** | cong; 3 Aug (m) low | S4 | 152.00/10 | ** | 50% ret; 27 Jan YTD low |
Asterisk denotes strength of level
13:45 BST - Consolidation has given way to a steady USD- and JPY-driven bounce. The break above 154.50 has improved sentiment and put focus on resistance at congestion around 155.00 and the 155.25 monthly low of 3 August. Intraday studies are rising and oversold daily stochastics are unwinding, suggesting potential for a test above here in heightened volatility. Congestion resistance at 156.00 will then attract. But the bearish daily Tension Indicator and negative weekly charts should limit any tests in renewed selling interest.
Meanwhile, support is raised to congestion around 154.50 and extends to 154.00. A close beneath here, not yet seen, will add weight to sentiment and open up strong support at the 152.90 weekly low of 8 September.