Chart USD/JPY Update: Room for still lower
Cautious trade around 154.00 has given way to a test of support at the 152.90 low of 8 September
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 156.00 | * | congestion | S1 | 152.90 | 8 Sep low | ||
| R3 | 155.00/25~ | ** | cong; 3 Aug (m) low | S2 | 152.00/10 | ** | 50% ret; 27 Jan YTD low | |
| R2 | 154.50 | minor congestion | S3 | 151.50 | * | congestion | ||
| R1 | 154.00 | * | congestion | S4 | 151.00 | congestion |
Asterisk denotes strength of level
13:40 BST - Cautious trade around 154.00 has given way to a test of support at the 152.90 low of 8 September, before bouncing into fresh consolidation around 153.40. Daily stochastics and the daily Tension Indicator continue to point lower, and broader weekly charts are under pressure, highlighting room for further losses in the coming sessions. A close beneath here will add weight to bearish sentiment and extend late-July losses towards strong support at the 152.00 Fibonacci retracement and the 152.10 current year low of 27 January. However, flattening oversold daily stochastics could limit any initial tests in consolidation.
Meanwhile, resistance is lowered to congestion around 154.00 and extends to 154.50. A close above here, if seen, will improve sentiment and open up a test of 155.00/25.