Chart USD/JPY Update: Extending gains in JPY-driven trade
Anticipated gains have extended in JPY-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 161.90/00 | ** | 76.4% ret; congestion | S1 | 159.00 | * | congestion | |
| R3 | 160.60 | ** | 61.8% ret of Jul-Aug fall | S2 | 158.50 | * | range highs | |
| R2 | 160.00 | * | congestion | S3 | 158.00 | * | congestion | |
| R1 | 159.50 | * | congestion | S4 | 157.00 | ** | congestion |
Asterisk denotes strength of level
13:45 BST - Anticipated gains have extended in JPY-driven trade, with the break above 159.00 giving way to consolidation beneath 159.40. Daily stochastics are unwinding oversold areas and the daily Tension Indicator is turning positive, highlighting room for continuation towards congestion around 160.00. But negative weekly charts should limit any further strength in renewed selling interest beneath the 160.60 Fibonacci retracement. Meanwhile, a close back below 159.00 would stabilise price action and put focus on the 158.50 recent range highs. A further close below 158.00, however, would add weight to sentiment and open up a test of strong support within the 156.60 - 157.00 range.