Chart USD/JPY Update: Sharp bounce - studies under pressure
The anticipated break below 150.00 has met buying interest around 149.35
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 154.00 | ** | congestion | S1 | 150.00 | ** | congestion | |
| R3 | 153.27 | ** | 10 Oct YTD high | S2 | 149.00 | * | congestion | |
| R2 | 152.00 | congestion | S3 | 148.20 | * | 38.2% ret of Apr-Oct rally | ||
| R1 | 151.00 | break level | S4 | 148.00 | * | break level |
Asterisk denotes strength of level
13:55 BST - The anticipated break below 150.00 has met buying interest around 149.35, as oversold intraday studies unwind, with prices currently trading back above 150.00. Daily stochastics and the daily Tension Indicator continue to track lower, and overbought weekly stochastics are also turning down, unwinding negative divergence, suggesting room for fresh losses in the coming sessions. A break back below congestion support at 150.00 will open up 149.00. But the positive weekly Tension Indicator should limit any deeper losses in consolidation above the 148.20 Fibonacci retracement. Meanwhile, resistance is lowered to 151.00. A close above here would help to stabilise price action and give way to consolidation beneath congestion around 152.00.