Chart USD/JPY Update: Immediate gains to remain limited
Cautious trade is giving way to a test above congestion resistance at 159.00 as intraday studies rise
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 160.40 | ** | April 1990 (y) high | S1 | 158.00 | * | break level | |
| R3 | 160.00 | ** | historic congestion | S2 | 157.50 | * | 19 Mar (w) low | |
| R2 | 159.75 | ** | 13 Mar (w) high | S3 | 157.00 | congestion | ||
| R1 | 159.00 | * | congestion | S4 | 156.45 | * | 4 Mar low |
Asterisk denotes strength of level
13:55 GMT - Cautious trade is giving way to a test above congestion resistance at 159.00 as intraday studies rise, with prices currently trading around 159.15. Focus is turning to strong resistance at the 159.75 weekly high of 13 March. But negative daily readings should limit any initial tests in renewed consolidation. Broader weekly charts are rising, but a close above the 160.40 year high of April 1990 is needed to turn sentiment positive and confirm continuation of long-term bull trends. Meanwhile, support remains at 158.00 and extends to the 157.50 weekly low of 19 March. A close beneath here would turn sentiment negative and confirm a near-term top in place at 159.75, as deeper losses then focus on congestion around 157.00.