Chart USD/JPY Update: Quiet trade, but studies remain under pressure
Consolidation around 157.00 has given way to further gains
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 161.00 | * | congestion | S1 | 157.00 | ** | congestion | |
| R3 | 160.00 | * | congestion | S2 | 156.60 | ** | 61.8% ret of Jan-Jul rally | |
| R2 | 159.00 | * | congestion | S3 | 156.00 | congestion | ||
| R1 | 158.00 | * | congestion | S4 | 155.00 | ** | congestion; 38.2% ret |
Asterisk denotes strength of level
13:20 BST - Consolidation around 157.00 has given way to further gains, with prices reaching congestion resistance at 158.00 in JPY-driven trade before settling lower into consolidation around 157.50. Oversold daily stochastics are flattening, suggesting room for further consolidation. But the daily Tension Indicator remains under pressure and broader weekly charts are falling, suggesting room for fresh losses in the coming sessions. Support remains at congestion around 157.00 and extends to the 156.60 Fibonacci retracement. A close beneath here will add weight to sentiment and extend late-July losses below 156.00 towards strong support within the 154.80 - 155.00 range. However, already oversold daily stochastics could limit any initial tests in fresh short-covering/consolidation, before still lower levels attract. Meanwhile, a close above 158.00, if seen, would provide further stabilise and give way to consolidation beneath intraday congestion around 159.00.