Chart USD/JPY Update: Sharp bounce in USD- and JPY-driven trade
Choppy trade around support within the 156.70 Fibonacci retracement and congestion around 157.00 has given way to a bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 161.00 | * | break level | S1 | 158.00 | ** | congestion | |
| R3 | 160.40 | ** | 2 Sep (m) high | S2 | 157.00 | congestion | ||
| R2 | 160.00 | ** | congestion | S3 | 156.70 | * | 38.2% ret of Sep rally | |
| R1 | 159.00 | * | congestion | S4 | 155.95/00 | ** | 50% ret; congestion |
Asterisk denotes strength of level
08:50 BST - Choppy trade around support within the 156.70 Fibonacci retracement and congestion around 157.00 has given way to a bounce, with prices currently trading around 158.25 in both USD- and JPY-driven trade. Intraday studies are rising and negative daily studies have turned flat, suggesting room for a test of congestion resistance at 159.00. But mixed weekly charts should limit any initial tests in consolidation. A close above here, if seen, will improve sentiment and extend September gains into congestion beneath 160.00.
Meanwhile, support is raised to congestion around 158.00. A close back beneath here will turn sentiment neutral and put prices into congestion above 156.70 - 157.00.