Chart EUR/JPY Update: Immediate gains to remain limited
Cautious trade has given way to a bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 174.75 | ** | August 1992 year high | S1 | 170.00 | * | congestion | |
| R3 | 173.00 | * | 8 Sep 1992 high | S2 | 169.40 | * | congestion | |
| R2 | 171.60 | ** | 29 Apr YTD high | S3 | 169.00 | * | congestion | |
| R1 | 170.80 | * | 28 May high | S4 | 168.00 | * | congestion |
Asterisk denotes strength of level
14:20 - BST - Cautious trade has given way to a bounce, with prices currently trading just beneath the 170.80 high of 28 May. Rising intraday studies highlight potential for a test above here. However, negative daily readings are expected to limit any further gains in fresh selling interest beneath critical resistance at the 171.60 current year high of 29 April. Broader weekly charts are improving, but a close above here is needed to turn sentiment outright positive and prompt fresh 32-year highs. Meanwhile, support is at congestion around 170.00. A close beneath here would add weight to sentiment and open up further support within 169.00/40. Continuation beneath here would add weight to price action and put focus on 169.00.