Chart USD/JPY Update: Extending September gains in USD- and JPY-driven trade
Consolidation following the anticipated break above 158.00 is giving way to further gains in both USD- and JPY-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 160.40 | ** | 2 Sep (w) high | S1 | 158.00 | ** | congestion | |
| R3 | 160.00 | ** | congestion | S2 | 157.00 | congestion | ||
| R2 | 159.75 | ** | 61.8% ret of Jul-Sep fall | S3 | 156.00 | * | congestion | |
| R1 | 159.00 | * | congestion | S4 | 155.00 | * | congestion |
Asterisk denotes strength of level
14:00 BST - Consolidation following the anticipated break above 158.00 is giving way to further gains in both USD- and JPY-driven trade, with prices approaching congestion resistance at 159.00. Intraday studies are rising and daily readings are positive, highlighting room for a break above here and continuation of September gains into congestion capped by the 159.75 Fibonacci retracement and congestion around 160.00. However, any immediate tests of here could give way to consolidation, as daily stochastics remain flat in overbought areas and broader weekly charts are mixed.
Meanwhile, support is raised to congestion around 158.00. A close back beneath here, if seen, will turn sentiment neutral as prices settle into consolidation above further congestion around 157.00.