Chart EUR/JPY Update: Limited corrective gains
Cautious trade has given way to a move higher
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 164.00 | * | congestion | S1 | 160.00 | * | congestion | |
| R3 | 163.00 | * | congestion | S2 | 159.50 | ** | 61.8% ret of Dec rally | |
| R2 | 162.00 | * | congestion | S3 | 159.00 | * | congestion | |
| R1 | 161.00 | break level | S4 | 158.20 | ** | 61.8% ret of Dec rally |
Asterisk denotes strength of level
09:40 GMT - Cautious trade has given way to a move higher, as intraday studies improving, with prices currently pressure resistance at 161.00. Oversold daily stochastics are also unwinding, suggesting room for a break towards congestion resistance at 162.00. However, the negative daily Tension Indicator and bearish weekly charts are expected to limit any initial tests of here in renewed selling interest. Following corrective trade, fresh losses are looked for. Support remains at congestion around 0.1600. A later break will target the 159.50 Fibonacci retracement, with a further close beneath here adding weight to sentiment and extending late-December losses initially to congestion around 159.00.