Chart EUR/JPY Update: Leaning lower
Cautious trade is giving way to a drift lower
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 187.35 | ** | 50% ret of 1979-2000 fall | S1 | 184.00 | * | congestion | |
| R3 | 186.00 | * | figure | S2 | 183.00 | * | break level | |
| R2 | 185.55~ | 14 Jan YTD high | S3 | 182.00 | * | break level | ||
| R1 | 185.00 | * | break level | S4 | 181.55~ | ** | 17 Dec (w) low |
Asterisk denotes strength of level
14:15 GMT - Cautious trade is giving way to a drift lower, as intraday studies turn down, with focus on congestion support at 184.00. Positive daily readings have turned mixed/negative, highlighting a deterioration in sentiment and room for deeper losses. A break below 184.00 will open up 183.00. Deteriorating weekly charts point to potential for further losses, with a break beneath here adding weight to sentiment and signalling a near-term top in place, as focus then turns initially to the 181.55~ weekly low of 17 December. Meanwhile, a close above 185.00 would improve price action and extend long-term gains towards strong resistance at the 187.35 multi-decade Fibonacci retracement. Deteriorating weekly charts could prompt significant selling interest towards here.