Chart USD/JPY Update: Room for a minor test higher
The anticipated test of resistance at the 159.50 congestion tops is giving way to fresh consolidation
| 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
13:40 BST - The anticipated test of resistance at the 159.50 congestion tops is giving way to fresh consolidation, as intraday studies remain mixed, with prices currently trading around 159.30~. Daily readings continue to track higher, highlighting room for further gains. But mixed weekly charts and deteriorating longer-term readings should limit any break in profit-taking/consolidation beneath further congestion around 160.00.
Meanwhile, support remains at 158.50 and extends to congestion around 158.00. A later close beneath here will add weight to sentiment and open up a test of strong support within the 156.60 - 157.00 range.