Chart EUR/JPY Update: Limited tests higher
Cautious trade has given way to a JPY-driven bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 187.35 | ** | 50% ret of 1979-2000 fall | S1 | 182.00 | * | break level | |
| R3 | 186.00 | * | figure | S2 | 181.00 | ** | congestion | |
| R2 | 185.00 | * | figure | S3 | 180.00 | ** | historic congestion | |
| R1 | 183.00/15 | * | figure; 12 Dec YTD high | S4 | 179.00 | * | break level |
Asterisk denotes strength of level
14:15 GMT - Cautious trade has given way to a JPY-driven bounce, with prices currently trading around 182.50. Rising intraday studies highlight room for further tests higher. But negative daily readings and deteriorating weekly charts are expected to limit scope in renewed selling interest towards critical resistance at 183.00~. Following corrective trade, fresh losses are looked for. Support remains at the 182.00 break level. A break beneath here will open up congestion around 181.00. But a close below 180.00 is needed to turn sentiment negative and confirm a near-term top in place around 183.00, as renewed selling interest then targets 179.00. Meanwhile, a close above 183.00, if seen, will improve sentiment and extend long-term gains towards 185.00.