Chart USD/JPY Update: Prices remain under pressure in JPY-driven trade
Cautious trade has given way to anticipated further losses
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 158.00 | * | congestion | S1 | 152.90 | intraday low | ||
| R3 | 157.00 | * | congestion | S2 | 152.00/10 | ** | 50% ret; 27 Jan YTD low | |
| R2 | 156.00 | * | congestion | S3 | 151.50 | * | congestion | |
| R1 | 155.00/25~ | ** | cong; 3 Aug (m) low | S4 | 151.00 | congestion |
Asterisk denotes strength of level
13:50 BST - Cautious trade has given way to anticipated further losses, with prices reaching 152.90 in JPY-driven trade before bouncing into consolidation just shy of 154.00. Daily readings continue to track lower and broader weekly charts are also turning bearish, highlighting room for still further losses in the coming sessions. A later break below 152.90 will open up strong support at the 152.00 Fibonacci retracement and the 152.10 current year low of 27 January. However, flattening oversold daily stochastics could limit any initial tests in consolidation.
Meanwhile, resistance remains at congestion around 155.00 and extends to the 155.25~ monthly low of 3 August. An unexpected close above here would help to stabilise price action and prompt consolidation beneath further congestion around 156.00.