Chart EUR/JPY Update: Prices remain under pressure
Choppy trade around 179.00 has given way to a sharp pullback
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 181.00 | * | congestion | S1 | 177.80/00 | * | 14 Sep YTD low; cong | |
| R3 | 180.00 | ** | congestion | S2 | 177.50 | * | congestion | |
| R2 | 179.50 | range highs | S3 | 177.00 | ** | congestion | ||
| R1 | 179.00 | * | congestion | S4 | 176.00 | ** | congestion |
Asterisk denotes strength of level
09:35 BST - Choppy trade around 179.00 has given way to a sharp pullback, with prices reaching 178.20 before bouncing back to 178.50. Overbought daily stochastics are unwinding and the positive daily Tension Indicator is flattening, suggesting a deterioration in sentiment and room for further losses in the coming sessions. Support is at the 177.80 current year low of 14 September and congestion around 178.00. A close beneath here will add weight to already bearish price action and extend broad April losses initially towards congestion around 177.50. Mixed/negative weekly charts could limit any initial tests in consolidation, before bearish longer-term charts prompt further losses.
Meanwhile, resistance is at congestion around 179.00. A close back above here, if seen, would help to stabilise sentiment and prompt consolidation within congestion centred around 179.50.