Chart EUR/JPY Update: Higher in JPY-driven trade
Cautious trade is giving way to anticipated gains
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 164.90 | ** | 50% ret of Jul-Aug fall | S1 | 160.00 | * | congestion | |
| R3 | 164.00 | * | break level | S2 | 159.00 | * | break level | |
| R2 | 162.40 | ** | 38.2% ret of Jul-Aug fall | S3 | 158.00 | * | congestion | |
| R1 | 162.00 | * | congestion | S4 | 156.00 | * | congestion |
Asterix denotes strength of level
14:10 BST - Cautious trade is giving way to anticipated gains, with prices approaching congestion resistance at 162.00 in JPY-driven trade. Both intraday and daily readings are positive, highlighting room for a break above here towards the 162.40 Fibonacci retracement. However, already overbought intraday studies and mixed/negative weekly charts could limit any initial tests in fresh consolidation. A close above here, however, will further improve price action and extend August gains towards 164.00. Meanwhile, support remains at congestion around 160.00 and should underpin any immediate tests lower. A break beneath here, if seen, will turn sentiment neutral once again and give way to consolidation around 159.00.