Chart EUR/JPY Update: Room for lower
Choppy trade has given way to anticipated selling interest
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 166.00 | ** | break level | S1 | 162.00 | congestion | ||
| R3 | 165.00 | ** | congestion base | S2 | 161.84 | ** | 17 Oct (w) low | |
| R2 | 164.00 | break level | S3 | 161.00 | * | congestion | ||
| R1 | 163.00 | * | congestion | S4 | 160.90 | ** | 50% ret of Sep-Oct rally |
Asterisk denotes strength of level
09:35 GMT - Choppy trade has given way to anticipated selling interest, with sharp losses reaching support at the 161.84 weekly low of 17 October and congestion around 162.00. Intraday studies are falling and daily readings are also under pressure, highlighting room for still deeper losses in the coming sessions. A break below 161.84 will add weight to already bearish price action and extend October losses towards support at the 160.90 Fibonacci retracement and congestion around 161.00. However, mixed weekly charts could limit any initial tests in fresh consolidation. Meanwhile, resistance is lowered to congestion around 163.00. A close above here, if seen, would help to stabilise price action and prompt consolidation beneath 164.00.