Chart USD/JPY Update: Consolidating USD- and JPY-driven gains - studies rising
The anticipated test of resistance at the 159.75 Fibonacci retracement and congestion around 160.00 is giving way to consolidation
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 161.35 | ** | 76.4% ret of Jul-Sep fall | S1 | 159.00 | * | congestion | |
| R3 | 160.40 | ** | 2 Sep (m) high | S2 | 158.00 | ** | congestion | |
| R2 | 160.00 | ** | congestion | S3 | 157.50 | congestion | ||
| R1 | 159.75 | ** | 61.8% ret of Jul-Sep fall | S4 | 157.00 | * | congestion |
Asterisk denotes strength of level
13:50 GMT - The anticipated test of resistance at the 159.75 Fibonacci retracement and congestion around 160.00 is giving way to consolidation, as overbought intraday studies unwind, with prices currently balanced around 59.65. A minor pullback is possible. But rising daily readings and positive weekly charts should limit any immediate setbacks in renewed buying interest above congestion support at 159.00. An unexpected close beneath here would help to stabilise price action and prompt consolidation/range extension above further congestion around 158.00.
Following cautious/corrective trade, fresh USD- and JPY-driven gains are looked for. A close above 159.75 will further improve sentiment and extend September gains beyond the 160.40 monthly high of 2 September towards the 161.35 retracement.