Chart USD/JPY Update: Room for lower
Cautious trade around 156.00 has given way to a sharp break lower
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 158.00 | * | congestion | S1 | 155.00 | * | congestion | |
| R3 | 157.00 | * | congestion | S2 | 153.75 | ** | 50% ret of Dec-Jan rally | |
| R2 | 156.75 | 23 Jan high | S3 | 153.00 | ** | congestion | ||
| R1 | 156.00 | * | congestion | S4 | 152.55 | ** | 61.8% ret of Dec-Jan rally |
Asterisk denotes strength of level
08:50 GMT - Cautious trade around 156.00 has given way to a sharp break lower, as intraday studies turn down, with the test of congestion support at 155.00 giving way to consolidation around 155.35. Daily readings continue to track lower and broader weekly charts are under pressure, highlighting a deterioration in sentiment and room for further losses in the coming sessions. A break below 155.00 will add weight to already bearish price action and extend January losses initially towards the 153.75 Fibonacci retracement. Still lower is 153.00. Meanwhile, resistance is lowered to congestion around 156.00. A close above here, if seen, will turn sentiment neutral and prompt consolidation beneath the 156.75 - 157.00 area.