Chart EUR/JPY Update: Focus on critical support at 181.78
Anticipated losses have extended below 182.50 to reach 182.20
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 186.22 | 9 Feb high | S1 | 182.50 | * | break level | ||
| R3 | 185.00 | ** | break level | S2 | 181.78 | ** | 26 Jan YTD low | |
| R2 | 184.00 | * | congestion | S3 | 181.00 | ** | congestion | |
| R1 | 183.00 | * | break level | S4 | 180.30 | * | 38.2% ret of Jul-Jan rally |
Asterisk denotes strength of level
12:30 GMT - Anticipated losses have extended below 182.50 to reach 182.20, where a tick higher in oversold intraday studies is prompting a bounce to 180.80. Daily readings are under pressure and broader weekly charts are falling, highlighting a bearish tone and room for further losses in the coming sessions. Critical support is at the 181.78 current year low of 26 January. A close beneath here will add weight to sentiment and confirm a near-term top in place at the 186.87 current year high of 23 January. Focus will then turn initially to the 180.30 Fibonacci retracement. Meanwhile, resistance is lowered to 183.00. A close above here, if seen, will help to stabilise price action and prompt consolidation beneath congestion around 184.00.