Chart EUR/JPY Update: Sharp bounce, but studies continue to point lower
The anticipated break below 159.00 has bounced smartly from congestion support at 158.00
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 164.00 | * | break level | S1 | 159.00 | * | break level | |
| R3 | 163.00 | congestion | S2 | 158.00 | * | congestion | ||
| R2 | 162.00 | * | congestion | S3 | 157.29 | 6 Aug low | ||
| R1 | 160.00 | * | congestion | S4 | 154.39 | ** | 5 Aug (m) low |
Asterisk denotes strength of level
14:50 BST - The anticipated break below 159.00 has bounced smartly from congestion support at 158.00, as intraday studies track higher, with prices currently trading back above 159.00. Daily readings continue to track lower, and broader weekly charts are also falling, highlighting room for renewed losses in the coming sessions. A close below 159.00 will add weight to sentiment and extend mid-August losses below 158.00 towards the 157.29 low of 6 August. A further close beneath here will open up stronger support at the 154.39 monthly low of 5 August. Meanwhile, a close above congestion resistance at 160.00, not seen, would stabilise price action and prompt consolidation beneath further congestion around 162.00.