Chart USD/JPY Update: Sharp pullback
Anticipated gains following the run to the 153.27 weekly high of 10 October have not been seen
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 155.00 | * | congestion | S1 | 152.00 | congestion | ||
| R3 | 154.40 | ** | 76.4% ret of Jan-Apr fall | S2 | 151.00 | break level | ||
| R2 | 154.00 | ** | congestion | S3 | 150.00 | ** | congestion | |
| R1 | 153.27 | ** | 10 Oct (w) high | S4 | 149.37 | 17 Oct (w) low |
Asterisk denotes strength of level
14:00 GMT - Anticipated gains following the run to the 153.27 weekly high of 10 October have not been seen, as unwinding overbought intraday studies prompt a sharp pullback to congestion support at 152.00. Positive daily readings have turned down, highlighting a deterioration in sentiment and room for deeper losses in the coming sessions. A close below 152.00 will add weight to sentiment and open up 151.00. However, mixed/positive weekly charts are expected to limit any initial tests in fresh consolidation. Meanwhile, a close above 153.27 is needed to turn sentiment positive and confirm continuation of April gains towards the 154.40 Fibonacci retracement.