Chart USD/JPY Update: Sentiment improving in both USD- and JPY-driven trade
Cautious trade has spiked higher to the 158.85 weekly high of 16 July
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 161.95 | ** | 3 July 2024 (y) high | S1 | 158.00 | * | congestion | |
| R3 | 161.00 | * | break level | S2 | 157.00 | * | congestion | |
| R2 | 160.00 | ** | break level | S3 | 156.00 | * | congestion | |
| R1 | 158.85 | * | 16 Jul (w) high | S4 | 155.00 | * | congestion |
Asterisk denotes strength of level
14:05 GMT - Cautious trade has spiked higher to the 158.85 weekly high of 16 July, before settling into consolidation around 158.60. Daily readings have turned mixed/positive, suggesting potential for a test above here and continuation towards resistance at 160.00 in both USD- and JPY-driven trade. The positive weekly Tension Indicator suggests potential for a test above here. However, weekly stochastics are flat in overbought areas, pointing to increased profit-taking at higher levels and difficulty sustaining any tests of critical resistance at the 161.95 year high of 3 July 2024. Meanwhile, support is raised to congestion around 158.00. A break back below here will turn sentiment neutral and prompt consolidation above further congestion around 157.00.