Chart USD/JPY Update: Scope to extend gains
Consolidation at the 155.00/22 resistance has given way to break to retrace sharp losses from the 160.00/50 resistance
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 158.38 | * | 200-day MA | S1 | 155.00 | * | May low | |
| R3 | 158.00 | ** | congestion | S2 | 154.67 | * | 10 Sep high | |
| R2 | 157.50 | * | congestion | S3 | 154.00 | * | congestion | |
| R1 | 156.75/00 | ** | 4 Sep high, congestion | S4 | 152.88 | ** | 8 Sep low |
Asterisk denotes strength of level
01:00 GMT - Consolidation at the 155.00/22 resistance has given way to break to retrace sharp losses from the 160.00/50 resistance to reach 156.41 high. Positive intraday and daily studies suggest scope for further gains to strong resistance at the 156.75/157.00 area where reaction can be expected. Break here, if seen, will open up room to the 158.00 resistance. Corrective gains are expected to give way to renewed selling pressure later with support raised to the 155.00 May low. Break here and the 154.67 support will return focus to the downside for retest of the 153.00/152.88 congestion and 8 September low.