Chart USD/JPY Update: Under pressure in both USD- and JPY-driven trade
Cautious trade is giving way to a drift lower in both USD- and JPY-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 157.90/00 | * | 20 Nov (w) high; break level | S1 | 154.00 | * | break level | |
| R3 | 156.75 | * | 26 Nov high | S2 | 153.15 | * | 38.2% ret of Sep-Nov rally | |
| R2 | 156.00 | * | congestion | S3 | 153.00 | * | congestion | |
| R1 | 155.00 | * | break level | S4 | 152.80 | * | 7 Nov (m) low |
Asterisk denotes strength of level
14:05 GMT - Cautious trade is giving way to a drift lower in both USD- and JPY-driven trade, with the anticipated break below 155.00 currently trading around 154.65. Daily readings are bearish and broader weekly charts are deteriorating, highlighting room for continuation down to support at the 154.00 break level. Further selling will open up the 153.15 Fibonacci retracement. But already oversold daily stochastics could limit any initial tests in consolidation/short-covering. Meanwhile, a close back above resistance at the 155.00 break level, if seen, will help to stabilise price action and prompt consolidation beneath congestion around 156.00.