Chart USD/JPY Update: Poised to extend August gains
Anticipated gains have reached congestion resistance at 160.00
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 161.90/00 | ** | 76.4% ret; congestion | S1 | 159.50 | * | congestion tops | |
| R3 | 161.00 | congestion | S2 | 159.00 | congestion | |||
| R2 | 160.60 | ** | 61.8% ret of Jul-Aug fall | S3 | 158.50 | * | range highs | |
| R1 | 160.00 | * | congestion | S4 | 158.00 | * | congestion |
Asterisk denotes strength of level
14:05 BST - Anticipated gains have reached congestion resistance at 160.00, where mixed intraday studies and flat overbought daily stochastics are prompting fresh consolidation. The daily Tension Indicator continues to rise and oversold weekly stochastics are unwinding, suggesting room for a break and extension of August gains towards the 160.60 Fibonacci retracement. But the negative weekly Tension Indicator should limit any initial tests in consolidation. A close above here, however, will improve sentiment and open up strong resistance at 161.90/00.
Meanwhile, support is raised to 159.50 and extends to 159.00. This range should underpin any immediate setbacks.