Chart USD/JPY Update: Limited tests higher
Consolidation within the 158.00 - 158.50 support is giving way to a bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 161.00 | congestion | S1 | 158.50 | * | range highs | ||
| R3 | 160.60 | ** | 61.8% ret of Jul-Aug fall | S2 | 158.00 | * | congestion | |
| R2 | 160.00 | * | congestion | S3 | 157.00 | ** | congestion | |
| R1 | 159.50 | * | congestion tops | S4 | 156.60 | ** | 61.8% ret of Jan-Jul rally |
Asterisk denotes strength of level
13:30 BST - Consolidation within the 158.00 - 158.50 support is giving way to a bounce, as oversold intraday studies unwind, with prices currently trading around 158.75. Rising daily stochastics highlight room for a break above minor congestion resistance at 159.00. But the positive daily Tension Indicator is flattening and broader weekly charts are mixed/negative, suggesting any break should be limited in renewed selling interest/consolidation beneath the 159.50 congestion tops.
Following cautious/corrective trade, fresh losses are looked for. A later close below congestion support at 158.00 will add weight to sentiment and put focus on strong support within the 156.60 - 157.00 range.