Chart USD/JPY Update: Choppy trade - studies under pressure
The sharp bounce following volatile JPY-driven losses is giving way to choppy trade around 160.00
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 162.00 | * | congestion | S1 | 158.00 | ** | cong, 50% ret | |
| R3 | 161.50 | * | congestion | S2 | 157.00 | ** | congestion | |
| R2 | 161.00 | * | congestion | S3 | 156.60 | ** | 61.8% ret of Jan-Jul rally | |
| R1 | 160.00 | * | congestion | S4 | 156.00 | * | congestion |
Asterisk denotes strength of level
14:15 BST - The sharp bounce following volatile JPY-driven losses is giving way to choppy trade around 160.00. Daily readings continue to point lower and broader weekly charts are also under pressure, highlighting room for still further losses in the coming sessions. Support is at 158.00. A close beneath here will add weight to sentiment and extend losses initially towards congestion around 157.00. Beneath here is the 156.60 retracement, but oversold daily stochastics could prompt short-covering towards here. Meanwhile, a close above congestion resistance would help to stabilise price action and prompt consolidation beneath further congestion around 161.00.