Chart USD/JPY Update: Extending January losses
Cautious trade has given way to anticipated losses
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 151.00 | * | break level | S1 | 146.55~ | ** | 11 Mar YTD low | |
| R3 | 150.00 | ** | congestion | S2 | 145.00 | * | congestion | |
| R2 | 149.00 | congestion | S3 | 144.15 | ** | 76.4% ret of Sep-Jan rally | ||
| R1 | 148.00 | * | congestion | S4 | 143.00 | ** | congestion |
Asterisk denotes strength of level
10:10 BST - Cautious trade has given way to anticipated losses, with the break below the 147.00 Fibonacci retracement extending to the critical support at the 146.55~ current year low of 11 March. Intraday studies are flattening in oversold areas, suggesting potential for short-term consolidation around here. But daily readings are bearish and weekly charts are also ticking lower, highlighting room for a later break and continuation of January losses towards congestion around 145.00. Meanwhile, resistance is up to congestion around 148.00. An unexpected close above here would help to stabilise price action and prompt consolidation beneath further congestion around 149.00.