Chart USD/JPY Update: Leaning lower in USD- and JPY-driven trade
Consolidation is giving way to anticipated losses
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 160.00 | ** | congestion | S1 | 157.00 | congestion | ||
| R3 | 159.75 | ** | 61.8% ret of Jul-Sep fall | S2 | 156.70 | * | 38.2% ret of Sep rally | |
| R2 | 159.00 | * | congestion | S3 | 155.95/00 | ** | 50% ret; congestion | |
| R1 | 158.00 | ** | congestion | S4 | 155.25 | ** | 61.8% ret of Sep rally |
Asterisk denotes strength of level
08:55 BST - Consolidation is giving way to anticipated losses, as intraday studies continue to track lower, with USD- and JPY-driven trade currently extending pressure on support within the 156.70 Fibonacci retracement and congestion around 157.00. Daily readings are also deteriorating, suggesting room for a break towards support at the 155.95 retracement and congestion around 156.00. But unwinding oversold weekly stochastics could limit any initial tests in fresh consolidation, before the bearish weekly Tension Indicator and negative longer-term charts prompt a break and deeper retracement.
Meanwhile resistance remains at congestion around 158.00. A close back above here, if seen, will help to stabilise sentiment and prompt consolidation beneath 159.00.