Chart EUR/JPY Update: Cautious trade - any gains to remain limited
Consolidation has given way to a drift higher
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 185.00 | ** | break level | S1 | 180.80 | ** | 12-16 Feb (m) low | |
| R3 | 184.00 | * | congestion | S2 | 180.00 | ** | congestion, 23.6% ret | |
| R2 | 182.50 | ** | congestion | S3 | 178.00 | * | break level | |
| R1 | 182.00 | ** | congestion | S4 | 177.50 | ** | congestion |
Asterisk denotes strength of level
13:30 BST - Consolidation has given way to a drift higher, with prices currently pressuring congestion resistance at 182.00. Oversold daily stochastics are ticking higher, suggesting room for a test above here. But the bearish daily Tension Indicator and deteriorating weekly charts should limit scope in renewed selling interest beneath congestion around 182.50. Following cautious/corrective trade, fresh losses are looked for. Support remains down to the 180.80 monthly lows from 12-16 February. A later break beneath here will open up strong support at 180.00. Further selling pressure will add weight to sentiment and complete a multi-month distribution top beneath the 187.95 current year high of 17 April. Focus will then turn to the 177.50 - 178.00 range.