Chart EUR/JPY Update: Cautious trade - background studies under pressure
Consolidation around 180.80 has given way to further gains, with prices reaching 181.80 in JPY-driven trade, before settling lower to 181.35
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 185.00 | ** | break level | S1 | 180.80 | ** | 12-16 Feb (m) low | |
| R3 | 184.00 | * | congestion | S2 | 180.00 | ** | congestion, 23.6% ret | |
| R2 | 182.50 | ** | congestion | S3 | 178.00 | * | break level | |
| R1 | 182.00 | ** | congestion | S4 | 177.50 | ** | congestion |
Asterisk denotes strength of level
13:40 BST - Consolidation around 180.80 has given way to further gains, with prices reaching 181.80 in JPY-driven trade, before settling lower to 181.35. Oversold daily stochastics are flattening, suggesting room for consolidation in the coming sessions. But the bearish daily Tension Indicator and deteriorating weekly charts highlight potential for further later losses. Support is at the 180.80 monthly low of 12-16 February. A later break beneath here will open up strong support at 180.00. Further selling pressure will add weight to sentiment and complete a multi-month distribution top beneath the 187.95 current year high of 17 April. Focus will then turn to the 177.50 - 178.00 range. Meanwhile, resistance is at congestion within the 182.00 - 182.50 range. A close above here, if seen, would help to stabilise price action and prompt consolidation beneath further congestion around 184.00.