Chart EUR/JPY Update: Lower in both EUR- and JPY-driven trade
Cautious trade has given way to steady losses in both EUR- and JPY-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 187.35 | ** | 50% ret of 1979-2000 fall | S1 | 184.00 | * | congestion | |
| R3 | 186.00 | * | congestion | S2 | 183.40 | * | 38.2% ret of August rally | |
| R2 | 185.50 | * | recent range lows | S3 | 183.15 | * | 12 Aug low | |
| R1 | 185.00 | ** | break level | S4 | 182.70 | ** | 50% ret of August rally |
Asterisk denotes strength of level
14:25 BST - Cautious trade has given way to steady losses in both EUR- and JPY-driven trade, with prices reaching 183.65 before bouncing back above 184.00. Daily readings have turned bearish and rising weekly charts are flattening, suggesting room for further losses in the coming sessions. A close below 184.00 will add weight to sentiment and extend August losses towards the 183.40 Fibonacci retracement. Still lower is the 183.15 low of 12 August. But the 182.70 retracement should underpin any immediate tests, as daily stochastics then become oversold.
Meanwhile, resistance is lowered to 185.00. A close above here, if seen, would help to stabilise price action and prompt consolidation beneath 185.50.