Chart EUR/JPY Update: Cautious trade - studies leaning lower
Cautious trade around 187.00 has given way to a test of support within congestion around 186.00 and the 186.25 weekly low of 20 April
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 188.20~ | ** | May 1990 (y) high | S1 | 186.25 | * | 20 Apr (w) low | |
| R3 | 187.95/00 | * | 17 Apr YTD high; figure | S2 | 186.00 | * | congestion | |
| R2 | 187.60 | * | August 1990 high | S3 | 185.00 | ** | break level | |
| R1 | 187.35 | ** | 50% ret of 1979-2000 fall | S4 | 184.00 | * | congestion |
Asterisk denotes strength of level
14:25 BST - Cautious trade around 187.00 has given way to a test of support within congestion around 186.00 and the 186.25 weekly low of 20 April, before settling into consolidation around 186.50 as intraday studies turn mixed. Daily readings continue to point lower and rising weekly stochastics are flattening, suggesting room for fresh losses in the coming sessions. A close below 186.00 will add weight to sentiment and extend mid-April losses initially towards 185.00. Meanwhile, strong resistance remains within the 187.35 Fibonacci retracement and the 187.60 high of August 1990. However, a close above the 188.20~ multi-year high of May 1990 is needed to turn sentiment positive and confirm continuation of long-term gains.