Chart USD/JPY Update: Downside to remain limited
Anticipated tests lower have met buying interest just above congestion support at 156.00
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 161.95 | ** | Jul 2024 | S1 | 156.00 | * | congestion | |
| R3 | 160.00 | ** | congestion | S2 | 155.00 | * | break level | |
| R2 | 158.88 | ** | 10 Jan YTD high | S3 | 154.00 | * | break level | |
| R1 | 157.90/00 | * | 20 Nov (w) high; break level | S4 | 153.00 | * | congestion |
Asterisk denotes strength of level
08:45 GMT - Anticipated tests lower have met buying interest just above congestion support at 156.00, as oversold intraday studies unwind, with prices currently trading around 156.85. Overbought daily stochastics are turning down and the positive daily Tension Indicator is flattening, highlighting a more cautious tone and room for further profit-taking. However, mixed/positive weekly charts are expected to limit any break below 156.00 in renewed buying interest/consolidation above support at the 155.00 break level. Following cautious trade, fresh gains are looked for. Resistance remains at the 157.90 weekly high of 20 November and the 158.00 break level. But a close above the 158.88 current year high of 10 January is needed to turn sentiment positive and extend September 2024 gains towards historic congestion around 160.00.