Chart USD/JPY Update: Potential for a minor test lower
Still little change, as prices extend consolidation
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 156.65 | ** | 76.4% ret of Jul-Sep fall | S1 | 152.00 | ** | break level | |
| R3 | 155.00 | congestion | S2 | 151.00 | break level | |||
| R2 | 154.00 | * | break level | S3 | 150.00 | ** | congestion | |
| R1 | 153.40 | ** | 61.8% ret of Jul-Sep fall | S4 | 149.00 | congestion |
Asterisk denotes strength of level
13:50 GMT - Still little change, as prices extend consolidation following the test of strong resistance within the 153.40 Fibonacci retracement and the 154.00 break level. Daily readings have turned mixed/negative, highlighting a deterioration in sentiment and room for a corrective pullback. In the coming sessions, focus is expected to turn to support at the 152.00 break level. However, rising weekly charts should limit any initial tests in fresh consolidation. A close beneath here, if seen, would add weight to sentiment. But a further close below 151.00 would turn price action outright negative and signal a deeper pullback. Meanwhile, a close above 153.40/00 is needed, not yet seen, to turn sentiment positive and extend September gains in JPY-driven trade towards congestion around 155.00.