Chart EUR/JPY Update: Volatile at highs - critical resistance at 165.35
The sharp break lower has bounced smartly from above congestion support at 163.00
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 166.00 | ** | congestion | S1 | 164.00 | * | break level | |
| R3 | 165.35 | ** | 20 Mar YTD high | S2 | 163.50 | congestion | ||
| R2 | 165.17 | * | 9 Apr (w) high | S3 | 163.00 | * | congestion | |
| R1 | 165.00 | ** | break level | S4 | 162.50/60 | * | minor congestion; 2 Apr (w) low |
Asterisk denotes strength of level
14:25 BST - The sharp break lower has bounced smartly from above congestion support at 163.00, with prices once again balanced in consolidation around resistance at 165.00. Intraday studies are rising, and daily stochastics are also ticking higher, suggesting room for a test above here. However, the daily Tension Indicator is under pressure and broader weekly charts are turning down, suggesting potential profit-taking towards critical resistance at the 165.35 current year high of 20 March. A close above here would turn price action positive and extend July 2012 gains towards congestion around 166.00. Meanwhile, support remains at 164.00. A close beneath here would add weight to sentiment and open up 163.50 with room for continuation back to 163.00.