Chart USD/JPY Update: Consolidating minor gains - further gains to remain limited
Anticipated gains have reached 158.55, where unwinding overbought intraday studies are prompting consolidation
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 161.00 | * | congestion | S1 | 158.00 | * | congestion | |
| R3 | 160.00 | * | congestion | S2 | 157.00 | ** | congestion | |
| R2 | 159.50 | * | congestion | S3 | 156.60 | ** | 61.8% ret of Jan-Jul rally | |
| R1 | 159.00 | * | congestion | S4 | 156.00 | congestion |
Asterisk denotes strength of level
12:40 BST - Anticipated gains have reached 158.55, where unwinding overbought intraday studies are prompting consolidation. Oversold daily stochastics continue to rise, suggesting room for a test above here. But the bearish daily Tension Indicator and negative weekly charts should limit scope in renewed selling interest beneath further congestion around 159.00. Following cautious/corrective trade, fresh losses are looked for. A break back below 158.00 will put prices into fresh consolidation above congestion around 157.00. But a close below the 156.60 Fibonacci retracement add weight to sentiment and extend late-July losses initially to 156.00.