Chart USD/JPY Update: Range trade
Little change, as mixed intraday studies keep near-term sentiment cautious
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 161.00 | congestion | S1 | 158.50 | * | range highs | ||
| R3 | 160.60 | ** | 61.8% ret of Jul-Aug fall | S2 | 158.00 | * | congestion | |
| R2 | 160.00 | * | congestion | S3 | 157.00 | ** | congestion | |
| R1 | 159.50 | * | congestion tops | S4 | 156.60 | ** | 61.8% ret of Jan-Jul rally |
Asterisk denotes strength of level
13:40 BST - Little change, as mixed intraday studies keep near-term sentiment cautious and extend cautious trade around 159.00. Overbought daily stochastics and the daily Tension Indicator have ticked higher, suggesting room for a move towards resistance at the 159.50 congestion tops. But mixed weekly charts and deteriorating longer-term readings should limit any tests in profit-taking/consolidation. A close above here, however, will improve sentiment and extend August gains initially to congestion around 160.00.
Meanwhile, support remains at 158.50 and extends to congestion around 158.00. A close beneath here would add weight to sentiment and open up a test of strong support within the 156.60 - 157.00 range.