Chart USD/JPY Update: Room for lower
Cautious trade has given way to sharp losses
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 161.00 | July 2024 congestion | S1 | 158.00 | * | break level | ||
| R3 | 160.45 | ** | 30 Mar YTD high | S2 | 157.35/50 | ** | 38.2% ret; 19 Mar (w) low | |
| R2 | 160.00 | ** | historic congestion | S3 | 157.00 | * | congestion | |
| R1 | 159.00 | * | congestion | S4 | 156.35 | * | 50% ret of Feb-Mar rally |
Asterisk denotes strength of level
14:10 BST - Cautious trade has given way to sharp losses, with prices currently pressuring support at 158.00. Daily readings are under pressure and broader weekly charts are turning mixed/negative, highlighting room for further losses in the coming sessions. A break beneath here will add weight to sentiment and open up the 157.50 weekly low of 19 March. A further close beneath here will confirm a near-term top in place at the 160.45 current year high of 30 March, as focus then turns to the 157.35 Fibonacci retracement, ahead of congestion around 157.00. Meanwhile, resistance is lowered to congestion around 159.00. A close above here, if seen, would help to stabilise sentiment and prompt consolidation beneath 160.00.