Chart USD/JPY Update: Extending September gains
Cautious trade has given way to the anticipated break higher
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 157.00 | * | break level | S1 | 154.00 | * | break level | |
| R3 | 156.65 | ** | 76.4% ret of Jul-Sep fall | S2 | 152.50 | * | break level | |
| R2 | 156.00 | * | congestion | S3 | 152.00 | ** | break level | |
| R1 | 155.00 | * | congestion | S4 | 151.30~ | 6 Nov low |
Asterisk denotes strength of level
08:40 GMT - Cautious trade has given way to the anticipated break higher, with prices currently pressuring congestion resistance at 155.00. Oversold daily stochastics are unwinding and the flat daily Tension Indicator is ticking higher, highlighting potential for continuation of September gains towards further congestion around 156.00. However, broader weekly stochastics are flattening in overbought areas, suggesting continuation beyond here could give way to profit-taking towards the 156.65 Fibonacci retracement. Meanwhile, support is raised to 154.00. A close beneath here would turn sentiment neutral and give way to consolidation above the 152.50 break level.