Chart USD/JPY Update: Short-term consolidation before higher
Anticipated gains have reached 157.00, where unwinding overbought intraday studies are prompting short-term reactions
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 160.00 | ** | break level | S1 | 156.00 | * | congestion | |
| R3 | 158.88 | ** | 10 Jan YTD high | S2 | 155.00 | * | break level | |
| R2 | 157.90/00 | * | 20 Nov (m) high; break level | S3 | 154.34 | * | 5 Dec (w) low | |
| R1 | 157.00 | minor congestion | S4 | 154.00 | * | break level |
Asterisk denotes strength of level
14:05 GMT - Anticipated gains have reached 157.00, where unwinding overbought intraday studies are prompting short-term reactions. A minor pullback is possible, but rising daily stochastics and the improving daily Tension Indicator are expected to limit any losses in renewed buying interest/consolidation above congestion support at 156.00. Following cautious trade, fresh gains are looked for. A break above 157.00 will open up stronger resistance at the 157.90 monthly high of 20 November and the 158.00 break level. However, flattening positive weekly readings are expected to limit any initial tests in profit-taking/consolidation. Meanwhile, a break below 156.00, if seen, will extend losses towards 155.00, where fresh buying interest is expected to appear.