Chart USD/JPY Update: Extending cautious trade beneath the 154.40 Fibonacci retracement
The test of strong resistance within the 154.00 break level and the 154.40 Fibonacci retracement is giving way to a pullback
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 155.88/00 | * | February high; congestion | S1 | 153.00 | * | congestion | |
| R3 | 155.00 | * | congestion | S2 | 152.00 | * | congestion | |
| R2 | 154.40 | ** | 76.4% ret of Jan-Apr fall | S3 | 151.00 | break level | ||
| R1 | 154.00 | * | break level | S4 | 150.00 | ** | congestion |
Asterisk denotes strength of level
13:55 GMT - The test of strong resistance within the 154.00 break level and the 154.40 Fibonacci retracement is giving way to a pullback, as overbought intraday studies turn down, unwinding negative divergence. The daily Tension Indicator is also coming under pressure, highlighting room for a fall towards congestion support at 153.00. But negative daily stochastics are flattening and broader weekly charts are mixed, suggesting any initial tests could give way to consolidation. Meanwhile, a close above 154.00, not yet seen, will improve sentiment and extend April gains towards congestion around 155.00. Beyond here is the 155.88 high of February and congestion around 156.00.