Chart USD/JPY Update: Room for a corrective bounce from significant lows
Cautious trade around support within congestion at 140.00 and the 140.50 Fibonacci retracement has given way to a sharp USD- and JPY-driven bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 145.00 | * | congestion | S1 | 141.00 | * | congestion | |
| R3 | 144.00 | * | congestion | S2 | 140.50 | ** | 61.8% ret of 2023-2024 rally | |
| R2 | 143.20 | intraday high | S3 | 140.00 | ** | congestion | ||
| R1 | 142.00 | * | congestion | S4 | 139.58 | ** | 16 Sep 2024 (y) low |
Asterisk denotes strength of level
08:50 BST - Cautious trade around support within congestion at 140.00 and the 140.50 Fibonacci retracement has given way to a sharp USD- and JPY-driven bounce, with prices spiking to 143.20 before settling lower in fresh consolidation beneath congestion resistance at 142.00. Oversold daily stochastics are rising and the daily Tension Indicator is turning positive, suggesting an improvement in sentiment and room for fresh tests higher in the coming sessions. A close above 142.00 will open up congestion resistance at 144.00. But negative weekly charts are expected to limit any tests in renewed selling interest. Meanwhile, support is at congestion around 141.00 and extends to 140.00/05. However, a close below critical support at the 139.58 year low of 16 September 2024 is needed to turn sentiment negative and extend July 2024 losses initially to congestion around 138.00.