Chart EUR/JPY Update: Choppy after sharp losses - studies under pressure
The anticipated break below 181.00 has bounced from 180.50
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 185.00 | ** | break level | S1 | 180.00 | ** | congestion, 23.6% ret | |
| R3 | 184.00 | * | congestion | S2 | 179.35~ | ** | 3 Aug YTD low | |
| R2 | 182.00 | * | break level | S3 | 178.00 | * | congestion | |
| R1 | 181.00 | * | congestion | S4 | 177.00 | * | congestion |
Asterisk denotes strength of level
13:50 BST - The anticipated break below 181.00 has bounced from 180.50, with steady short-covering posting a bounce to congestion resistance at 182.00, before falling sharply once again to trade back below 181.00. Daily stochastics and the daily Tension Indicator continue to fall, highlighting room for a test of strong support at 180.00. But already oversold daily stochastics could limit any initial tests in consolidation, before deteriorating weekly charts prompt further losses. A close below critical support at the 179.35~ current year low of 3 August would add weight to sentiment and show early signs of completing a multi-month top beneath 188.00.
Meanwhile, a close above 182.00 would help to stabilise price action and prompt consolidation beneath congestion around 184.00.