Chart EUR/JPY Update: Lower in JPY-driven trade
Cautious trade above 180.00 has given way to a sharp break lower in JPY-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 181.55 | ** | 38.2% ret of Jul-Sep fall | S1 | 179.00 | * | congestion | |
| R3 | 181.00 | * | congestion | S2 | 177.80/00 | * | 14 Sep YTD low; cong | |
| R2 | 180.00 | ** | congestion | S3 | 177.50 | * | congestion | |
| R1 | 179.50 | range highs | S4 | 177.00 | ** | congestion |
Asterisk denotes strength of level
14:20 BST - Cautious trade above 180.00 has given way to a sharp break lower in JPY-driven trade, with prices currently pressuring congestion support at 179.00. Negative intraday studies and a tick lower in overbought daily stochastics highlight room for a break, with focus then turning to congestion around 178.00 and the 177.80 current year low of 14 September. However, the rising daily Tension Indicator could limit any initial tests in fresh consolidation, before mixed/negative weekly charts prompt further losses.
Meanwhile, resistance is lowered to 179.50 and extends to congestion around 180.00. A close above here is needed to stabilise price action and prompt consolidation beneath further congestion around 181.00.