Chart EUR/JPY Update: Sharp pullback from fresh year high
The anticipated break above 173.00 has posted a fresh year high at 173.90
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 175.00 | congestion | S1 | 172.00 | * | break level | ||
| R3 | 174.00 | congestion | S2 | 171.00 | ** | break level | ||
| R2 | 173.90 | current year high | S3 | 170.00 | congestion | |||
| R1 | 173.00 | * | congestion | S4 | 169.00 | * | congestion |
Asterisk denotes strength of level
14:10 BST - The anticipated break above 173.00 has posted a fresh year high at 173.90, where unwinding overbought intraday studies are prompting a sharp pullback and break back below 173.00 to trade around 172.50. Focus is on support at 172.00, but mixed daily readings are expected to limit any initial tests in consolidation. Overbought weekly stochastics are turning down, suggesting room for still deeper losses. But a close below further support at 171.00 is needed to confirm a near-term top in place and extend losses initially towards 170.00. Meanwhile, a close above congestion resistance at 174.00 will turn sentiment positive and extend August 2024 highs towards critical resistance at the 175.43 multi-year high of 11 July 2024.