Chart USD/JPY Update: Extending July losses in JPY-driven trade
Cautious trade around 156.00 has given way to a sharp break lower in JPY-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 158.00 | * | congestion | S1 | 154.80 | ** | 38.2% ret of 2025-2026 rally | |
| R3 | 157.00 | * | congestion | S2 | 154.00 | * | congestion | |
| R2 | 156.00 | * | congestion | S3 | 153.00 | * | congestion | |
| R1 | 155.00/25~ | ** | cong; 3 Aug (m) low | S4 | 152.00 | ** | 50% ret of 2025-2026 rally |
Asterisk denotes strength of level
11:15 BST - Cautious trade around 156.00 has given way to a sharp break lower in JPY-driven trade, with prices reaching 154.00~ before bouncing back to the 154.80 Fibonacci retracement. Daily readings are bearish and broader weekly charts are also under pressure, highlighting room for still further losses in the coming sessions. Focus is expected to turn back to congestion support at 154.00, with a break adding weight to already bearish price action and extending late-July losses towards congestion around 153.00. Beneath here is the 152.00 Fibonacci retracement. But already oversold weekly stochastics could limit any initial tests of here in short-covering/consolidation.
Meanwhile, resistance is lowered to congestion around 155.00 and extends to the 155.25~ monthly low of 3 August. A close above here would help to stabilise price action and prompt consolidation beneath further congestion around 156.00.