Chart USD/JPY Update: Pushing higher in USD- and JPY-driven trade
Cautious trade is giving way to a push higher in both USD- and JPY-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 160.40 | ** | 2 Sep (m) high | S1 | 158.00 | ** | congestion | |
| R3 | 160.00 | ** | congestion | S2 | 157.00 | congestion | ||
| R2 | 159.75 | ** | intraday lows | S3 | 156.70 | * | 38.2% ret of Sep rally | |
| R1 | 159.00 | * | congestion | S4 | 155.95/00 | ** | 50% ret; congestion |
Asterisk denotes strength of level
14:00 BST - Cautious trade is giving way to a push higher in both USD- and JPY-driven trade, with prices approaching congestion resistance at 159.00. Daily stochastics and the daily Tension Indicator are improving, highlighting room for a break. Focus will then turn to strong resistance at the 159.75 intraday lows and congestion around 160.00, But by-then overbought daily stochastics could limit any initial tests in fresh consolidation. Broader weekly charts are rising. But a further close above the 160.40 monthly high of 2 September is needed to confirm a more sustainable rally and continuation of September gains.
Meanwhile, support remains at congestion around 158.00, and should continue to underpin any immediate setbacks.