Chart EUR/JPY Update: Reduced volatility - studies under pressure
Fresh selling interest has reached 179.35, where short-covering has prompted a bounce into consolidation around the 180.80 monthly low of 12-16 February
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 185.50 | break level | S1 | 180.80 | ** | 12-16 Feb (m) low | ||
| R3 | 185.00 | ** | break level | S2 | 180.00 | ** | congestion, 23.6% ret | |
| R2 | 184.00 | * | congestion | S3 | 178.00 | * | break level | |
| R1 | 182.50 | ** | congestion | S4 | 177.50 | ** | congestion |
Asterisk denotes strength of level
14:00 BST - Fresh selling interest has reached 179.35, where short-covering has prompted a bounce into consolidation around the 180.80 monthly low of 12-16 February. Daily readings continue to fall and broader weekly charts are deteriorating, highlighting room for further losses in the coming sessions. A break below 180.80 will open up strong support at 180.00. A further close beneath here will add weight to sentiment and complete a multi-month distribution top beneath the 187.95 current year high of 17 April. Focus will then turn to the 177.50 - 178.00 range. Meanwhile, resistance is lowered to congestion around 182.50. A close above here, if seen, would help to stabilise price action and prompt consolidation beneath further congestion around 184.00.