Chart EUR/JPY Update: Consolidating test of 186.00 - studies rising
The anticipated test of congestion resistance at 186.00 has given way to a pullback
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 188.20 | ** | May 1990 (y) high | S1 | 185.00 | ** | break level | |
| R3 | 187.95 | ** | 17 Apr YTD high | S2 | 184.00 | * | congestion | |
| R2 | 187.35 | ** | 50% ret of 1979-2000 fall | S3 | 183.15 | * | 12 Aug low | |
| R1 | 186.00 | * | congestion | S4 | 182.50 | ** | congestion |
Asterisk denotes strength of level
14:10 BST - The anticipated test of congestion resistance at 186.00 has given way to a pullback, as overbought intraday studies unwind, with prices currently trading around 185.55. The daily Tension Indicator continues to rise, highlighting room for retest of 186.00. But a tick lower in overbought daily stochastics should limit any initial tests in consolidation, before improving weekly charts prompt a break. A close above here will open up the 187.35 multi-year Fibonacci retracement. However, already overbought daily stochastics should limit any immediate tests in profit-taking/consolidation.
Meanwhile, support remains at 185.00. A close beneath here would help to stabilise sentiment and prompt consolidation above congestion support at 184.00.