Chart EUR/JPY Update: Gains to remain limited
The test of congestion resistance at 162.00 is giving way to anticipated consolidation
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 165.00 | ** | break level | S1 | 161.00 | break level | ||
| R3 | 164.00 | * | congestion | S2 | 160.00 | * | congestion | |
| R2 | 163.00 | * | congestion | S3 | 159.50 | ** | 61.8% ret of Dec rally | |
| R1 | 162.00 | * | congestion | S4 | 159.00 | * | congestion |
Asterisk denotes strength of level
14:35 GMT - The test of congestion resistance at 162.00 is giving way to anticipated consolidation, as intraday studies turn mixed, with prices currently balanced around 161.65. Oversold daily stochastics are unwinding and the bearish daily Tension Indicator is flattening, suggesting potential for a test above here. Focus will then turn to further congestion around 163.00, but mixed/negative weekly charts could limit any initial tests in renewed consolidation. Meanwhile, support is raised to 161.00 and extends to congestion around 160.00. However, a close below the 159.50 Fibonacci retracement is needed to turn sentiment negative and confirm continuation of late-December losses.