Chart EUR/JPY Update: Room for lower
The anticipated break below 171.00 has reached 170.50
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 173.90/00 | ** | 28 Jul YTD high; cong | S1 | 170.00 | congestion | ||
| R3 | 173.00 | * | congestion | S2 | 169.00 | * | congestion, 38.2% ret | |
| R2 | 172.00 | * | break level | S3 | 168.00 | ** | congestion | |
| R1 | 171.00 | ** | break level | S4 | 167.50 | ** | 50% ret of Mar-Jul rally |
Asterisk denotes strength of level
14:15 BST - The anticipated break below 171.00 has reached 170.50, where short-term consolidation is developing. Intraday studies are bearish and daily readings are coming under fresh pressure, highlighting room for further losses in the coming sessions. Support is at congestion around 170.00. A break beneath here will add weight to sentiment and open up stronger support at 169.00, where already oversold daily stochastics could prompt fresh consolidation. Broader weekly charts continue to deteriorate, highlighting room for a later break and extension of late-July losses towards the 167.50 Fibonacci retracement. Meanwhile, resistance is lowered to 171.00. A close above here would help to stabilise price action and prompt consolidation beneath 172.00.