Chart EUR/JPY Update: Cautious trade - sentiment turning cautious/mixed
Little change, as prices extend cautious trade beneath congestion resistance at 186.00
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 188.20 | ** | May 1990 (y) high | S1 | 185.00 | ** | break level | |
| R3 | 187.95 | ** | 17 Apr YTD high | S2 | 184.00 | * | congestion | |
| R2 | 187.35 | ** | 50% ret of 1979-2000 fall | S3 | 183.15 | * | 12 Aug low | |
| R1 | 186.00 | * | congestion | S4 | 182.50 | ** | congestion |
Asterisk denotes strength of level
14:00 BST - Little change, as prices extend cautious trade beneath congestion resistance at 186.00. Intraday studies are under pressure and overbought daily stochastics are unwinding, suggesting room for a test lower. But the positive daily Tension Indicator and rising weekly charts should limit any immediate pullback in renewed consolidation above 185.00. A close beneath here, however, will add weight to sentiment and give way to a deeper retracement towards congestion support at 184.00.
Meanwhile, a close above 186.00, if seen, will help to improve sentiment and extend sharp August gains towards strong resistance at the 187.35 multi-year Fibonacci retracement. However, bearish longer-term charts could limit any immediate tests in profit-taking/consolidation.