Chart USD/JPY Update: Higher in USD- and JPY-driven trade, but scope to remain limited
Cautious trade is giving way to a push higher in both USD- and JPY-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 156.00 | * | congestion | S1 | 152.90 | 8 Sep low | ||
| R3 | 155.00/25~ | ** | cong; 3 Aug (m) low | S2 | 152.00/10 | ** | 50% ret; 27 Jan YTD low | |
| R2 | 154.50 | minor congestion | S3 | 151.50 | * | congestion | ||
| R1 | 154.00 | * | congestion | S4 | 151.00 | congestion |
Asterisk denotes strength of level
13:10 BST - Cautious trade is giving way to a push higher in both USD- and JPY-driven trade, with prices currently pressuring broad resistance within the 154.00 - 154.50 range. Oversold daily stochastics are ticking higher, suggesting room for a test above 154.50. But the bearish daily Tension Indicator and negative weekly charts should limit scope in renewed selling interest towards the 155.00 - 155.25 barrier.
Following cautious/corrective trade, fresh losses are looked for. A later close below support at the 152.90 low of 8 September will add weight to sentiment and extend late-July losses towards strong support at the 152.00 Fibonacci retracement and the 152.10 current year low of 27 January.