Chart EUR/JPY Update: Higher in choppy EUR-driven trade
Cautious trade is giving way to a sharp break higher in EUR-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 166.68 | ** | 31 Oct (m) high | S1 | 162.00 | * | congestion | |
| R3 | 165.00 | ** | break level | S2 | 161.00 | break level | ||
| R2 | 164.00 | * | congestion | S3 | 160.00 | * | congestion | |
| R1 | 163.00 | * | congestion | S4 | 159.50 | ** | 61.8% ret of Dec rally |
Asterisk denotes strength of level
09:55 GMT - Cautious trade is giving way to a sharp break higher in EUR-driven trade, with prices currently trading just above congestion resistance at 163.00. Intraday studies are turning higher and daily readings are also improving, highlighting room for further strength in the coming sessions. Focus is expected to turn to congestion resistance at 164.00, but mixed weekly charts could limit any initial tests in fresh consolidation. A close above 165.00 is needed to turn sentiment outright positive and confirm continuation of December gains. Meanwhile, support remains at congestion around 162.00 and should underpin any immediate setbacks.