Chart USD/JPY Update: Back in range - cautious price action
Consolidation above 158.00 has given way to a drift lower
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 160.00 | ** | congestion | S1 | 157.00 | * | congestion | |
| R3 | 159.75 | ** | intraday lows | S2 | 155.95/00 | ** | 50% ret; congestion | |
| R2 | 159.00 | * | congestion | S3 | 155.25 | ** | 61.8% ret of Sep rally | |
| R1 | 158.00 | ** | congestion | S4 | 154.00 | ** | congestion |
Asterisk denotes strength of level
13:55 GMT - Consolidation above 158.00 has given way to a drift lower, with prices currently balanced around 157.80. Intraday studies are under pressure, highlighting room for further slippage. But mixed/positive daily readings and improving weekly charts should limit initial scope in renewed buying interest/consolidation above congestion support at 157.00. A break would open up strong support at the 155.95 Fibonacci retracement and congestion around 156.00. A further close beneath here would turn sentiment negative and open up the 155.25 retracement.
Meanwhile, resistance is at congestion around 158.00. A close above 159.00 would turn sentiment positive and extend September gains towards 160.00.