Chart EUR/JPY Update: Under pressure
Cautious trade has given way to deeper losses
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 175.00 | ** | figure | 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, 38.2% ret | |
| R1 | 172.00 | * | break level | S4 | 168.00 | ** | break level |
Asterisk denotes strength of level
13:45 BST - Cautious trade has given way to deeper losses, with the break below 172.00 reaching support at 171.00, where oversold intraday studies are prompting short-term reactions. Positive daily readings are flattening and broader weekly charts continue to fall, highlighting room for still deeper losses in the coming sessions. A break below 171.00 will open up stronger support at congestion around 170.00. A further close beneath here will turn sentiment outright negative and extend late-July losses initially to strong support at 169.00. Meanwhile, resistance is lowered to 172.00. A close above here, if seen, will help to stabilise price action and prompt consolidation beneath congestion resistance at 173.00.