Chartbook: Chart EUR/JPY: Consolidating at year low, room for further losses
Turned sharply lower at the start of Q3 from the fresh multi-year high at 175.40
Turned sharply lower at the start of Q3 from the fresh multi-year high at 175.40. Steep drop from there has since stabilized at support at the 155.00/154.00 congestion area.
Bounce from the latter see prices correcting losses from the 175.40 high to reach strong resistance at the 164.00/164.30 area which is expected to cap. Gains beyond this, if seen, will see room for stronger bounce to resistance at the 165.00/165.30 area.
However, gains are expected to give way to renewed selling pressure later and lower high sought for retest of the 155.00/154.00 support. Break here will see room for deeper pullback to retrace strong rally from the 114.40, 2020 year low to the 152.00, 38.2% Fibonacci retracement. Below this, will see scope to the strong support at the 150.00 figure. Lower still, will open up room to the 146.00/145.00, congestion and 50% Fibonacci level.