Chart EUR/JPY Update: Gains to remain limited
Consolidation following the bounce from congestion support at 184.00 is giving way to fresh gains
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 187.00 | * | break level | S1 | 185.00 | ** | break level | |
| R3 | 186.50 | congestion | S2 | 184.60 | congestion | |||
| R2 | 186.00 | * | congestion | S3 | 184.00 | * | congestion | |
| R1 | 185.40 | break level | S4 | 183.50 | * | congestion |
Asterisk denotes strength of level
13:50 BST - Consolidation following the bounce from congestion support at 184.00 is giving way to fresh gains, with the break above 185.00 turning sentiment neutral and putting pressure on resistance at 185.40. Rising intraday studies highlight room for continuation towards congestion resistance at 186.00. But negative daily readings should limit any initial tests in renewed consolidation. A close above here, however, will improve price action and extend early-May gains towards 186.50. Following cautious/corrective trade, fresh losses are looked for. A close back below 185.00 will open up 184.00, where mixed weekly charts should prompt fresh consolidation.