Chart EUR/JPY Update: Downside tests to remain limited
Little change, as prices extend consolidation following the pullback from the fresh year high around 177.95~
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 180.00 | ** | historic congestion | S1 | 176.00 | * | break level | |
| R3 | 178.90 | ** | Sep 1990 high | S2 | 175.00 | * | congestion | |
| R2 | 178.00 | ** | Jan 1991 (y) high | S3 | 174.00 | ** | congestion | |
| R1 | 177.00 | intraday break level | S4 | 173.25 | * | 3 Oct high, gap low |
Asterisk denotes strength of level
16:25 BST - Little change, as prices extend consolidation following the pullback from the fresh year high around 177.95~. Overbought daily stochastics are unwinding, suggesting a cautious tone and room for further tests lower. A break below support at 176.00 will open up congestion around 175.00. But the positive daily Tension Indicator and improving weekly charts are expected to prompt renewed buying interest towards here. Following cautious trade, fresh gains are looked for. Resistance is at 177.00. But a break above the 178.00 year high of January 1991 will improve sentiment and extend gains towards the 178.90 high of September 1990.