Chart EUR/JPY Update: Range trade - gains to remain limited
Consolidation around 172.50 has given way to a test of congestion resistance at 173.00
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 175.40 | ** | July 2024 (y) high | S1 | 172.00 | * | break level | |
| R3 | 175.00 | ** | figure | S2 | 171.00 | ** | range lows | |
| R2 | 173.90/00 | ** | 28 Jul YTD high; cong | S3 | 170.00 | ** | congestion | |
| R1 | 173.00 | * | congestion | S4 | 169.00 | ** | congestion, 38.2% ret |
Asterisk denotes strength of level
13:50 BST - Consolidation around 172.50 has given way to a test of congestion resistance at 173.00, with prices currently trading around 172.90. Rising intraday studies highlight room for a fresh test above here. But negative daily readings and deteriorating weekly charts are expected to limit scope in renewed selling interest beneath strong resistance at the 173.90 current year high of 28 July and congestion around 174.00. Meanwhile, support remains at 172.00. A later break will open up 171.00. But a further close below congestion around 170.00 is needed to confirm a near-term top in place around 173.90/00 and prompt a deeper correction, initially towards 169.00.