Chart EUR/JPY Update: Volatile pullback in JPY-driven trade
Cautious trade beneath strong resistance at the 187.35 Fibonacci retracement has been followed by a pullback in extreme JPY-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 186.00 | ** | congestion | S1 | 183.15 | ** | 24 Jun (m) low | |
| R3 | 185.50 | break level | S2 | 182.50 | ** | congestion | ||
| R2 | 185.00 | ** | break level | S3 | 181.87 | * | 16 Mar (m) low | |
| R1 | 184.00 | * | congestion | S4 | 180.80 | ** | 12-16 Feb YTD low |
Asterisk denotes strength of level
16:25 BST - Cautious trade beneath strong resistance at the 187.35 Fibonacci retracement has been followed by a pullback in extreme JPY-driven trade, with prices spiking below congestion around 182.50 in heightened volatility, before bouncing to currently trade around 183.65. A test above congestion resistance at 184.00 cannot be ruled out, as JPY-driven trade stabilises. But daily readings are turning down and positive weekly charts are flattening, suggesting any break could be limited in renewed selling interest beneath 185.00. Meanwhile, support is at the 183.15 monthly low of 24 June. A close beneath here will add weight to sentiment and initially open up congestion around 182.50. A further close beneath here would put focus on critical multi-month support at the 180.80 current year low from 12-16 February.