Chartbook: Chart EUR/JPY: Extending gains from February low
Clearance of the 164.00/165.00 area further extend the broad choppy gains from the 154.40, August 2024 year low, to reach 167.40, 61.8% Fibonacci level.
Extend bounce from the 155.00 late-February low to retest strong resistance at the 164.00/165.00 area. Clearance here further extend the broad choppy gains from the 154.40, August 2024 year low, to reach 167.40, 61.8% Fibonacci level.
Gains beyond this, if seen, will open up room for extension to target 170.45, 76.4% Fibonacci level. However, gains are seen corrective of the sharp July/August 2024 losses and expected to give way to renewed selling pressure later. Meanwhile, support is raised to the 165.00/164.00 congestion area.
Break here is needed to return focus to the downside for retest of support at the 161.00 congestion and 160.00 figure. Below these will open up room for retest of the 155.00 and 154.40 lows and where reaction can be expected. A later break here will extend the losses from the July 2024 multi-year high at 175.40 and see deeper pullback within the rising channel from the 2012 year low.