Chart USD/JPY Update: Less volatility - studies under pressure
Selling pressure has extended losses to 155.25, where short-covering has prompted a bounce into consolidation around congestion support at 157.00
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 161.00 | * | congestion | S1 | 157.00 | ** | congestion | |
| R3 | 160.00 | * | congestion | S2 | 156.60 | ** | 61.8% ret of Jan-Jul rally | |
| R2 | 159.00 | * | congestion | S3 | 156.00 | congestion | ||
| R1 | 158.00 | * | congestion | S4 | 155.00 | ** | congestion; 38.2% ret |
Asterisk denotes strength of level
13:45 BST - Selling pressure has extended losses to 155.25, where short-covering has prompted a bounce into consolidation around congestion support at 157.00. Daily readings continue to track lower and broader weekly charts are deteriorating, highlighting room for still further losses in the coming sessions. A close below the 156.60 Fibonacci retracement will add weight to sentiment and extend late-July losses below 156.00 towards strong support within the 154.80 - 155.00 range. However, already oversold daily stochastics could limit any initial tests in fresh short-covering/consolidation, before still lower levels attract. Meanwhile, a close above congestion resistance at 158.00, if seen, would help to stabilise price action and prompt consolidation beneath intraday congestion around 159.00.