Chart USD/JPY Update: Limited tests higher - background studies under pressure
Little change, as unwinding overbought intraday studies keep near-term sentiment cautious
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 158.44 | * | 26 Apr (w) high | S1 | 154.00 | * | congestion | |
R3 | 158.00 | * | congestion | S2 | 152.00 | ** | break level | |
R2 | 156.00 | * | congestion | S3 | 151.00 | * | break level | |
R1 | 155.00 | * | congestion | S4 | 150.00/25 | ** | congestion; 50% ret of Dec-Apr rally |
Asterisk denotes strength of level
14:10 BST - Little change, as unwinding overbought intraday studies keep near-term sentiment cautious and prompt cautious trade above congestion support at 154.00. Oversold daily stochastics are flattening, suggesting potential for a test of congestion resistance at 155.00. However, the daily Tension Indicator continues to track lower and broader weekly charts are under pressure, highlighting room for fresh selling interest towards here. Following cautious trade, price action is expected to turn lower once again. A close below 154.00 will open up 152.00. A further close beneath here will add weight to price action and extend late-April losses to 151.00. Continuation down to the 150.25 Fibonacci retracement cannot be ruled out. Meanwhile, a close above 155.00, if seen, will help to stabilise price action and prompt consolidation beneath 156.00.