Chart EUR/JPY Update: Under pressure
Cautious trade above 172.00 has given way to the anticipated break lower
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 175.00 | congestion | S1 | 171.00 | ** | break level | ||
| R3 | 173.90/00 | ** | 28 Jul YTD high; cong | S2 | 170.00 | congestion | ||
| R2 | 173.00 | * | congestion | S3 | 169.00 | * | congestion | |
| R1 | 172.00 | * | break level | S4 | 168.00 | ** | congestion |
Asterisk denotes strength of level
14:35 BST - Cautious trade above 172.00 has given way to the anticipated break lower, as intraday studies turn down, with prices currently balanced around 171.45. Daily readings are bearish and overbought weekly stochastics are unwinding, highlighting a deterioration in sentiment and room for further losses in the coming sessions. A break below support at 171.00 will add fresh weight to sentiment and confirm a near-term top in place at the 173.90 current year high of 28 July. Immediate focus will then turn to 170.00. Meanwhile, a close back above 172.00 will turn sentiment neutral and prompt consolidation beneath congestion around 173.00.