Chart USD/JPY Update: Further gains to remain limited
The anticipated test of congestion resistance at 156.00 is giving way to a pullback
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 160.00 | ** | figure | S1 | 155.00 | * | break level | |
| R3 | 157.90/00 | * | 20 Nov (m) high; break level | S2 | 154.34 | * | 5 Dec (w) low | |
| R2 | 157.00 | minor congestion | S3 | 154.00 | * | break level | ||
| R1 | 156.00 | * | congestion | S4 | 153.15 | ** | 38.2% ret of Sep-Nov rally |
Asterisk denotes strength of level
13:55 GMT - The anticipated test of congestion resistance at 156.00 is giving way to a pullback, as intraday studies turn down, with prices currently trading around 155.45. Oversold daily stochastics are edging higher and the negative daily Tension Indicator is flattening, suggesting room for a fresh test higher. But deteriorating weekly charts are expected to limit any break above 156.00 in renewed selling interest beneath congestion around 157.00. Following corrective trade, fresh losses are looked for. Immediate support is at the 155.00 break level. But a close below the 154.34 weekly low of 5 December is needed to turn sentiment negative and confirm continuation of late-November losses, as 154.00 then attracts, ahead of the 153.15 Fibonacci retracement.