Published: 2024-05-08T13:30:17.000Z
Chart USD/JPY Update: Higher in JPY-driven trade, but background studies under pressure
Senior Technical Strategist
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Cautious trade is giving way to a steady move higher in JPY-driven trade
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 160.00/20 | ** | figure; 29 Apr YTD high | S1 | 155.00 | * | congestion | |
R3 | 158.44 | * | 26 Apr (w) high | S2 | 154.00 | * | congestion | |
R2 | 158.00 | * | congestion | S3 | 152.00 | ** | break level | |
R1 | 156.00 | * | congestion | S4 | 151.00 | * | break level |
Asterisk denotes strength of level
14:15 BST - Cautious trade is giving way to a steady move higher in JPY-driven trade, with the break above 155.00 opening up congestion resistance at 156.00. Overbought intraday studies could prompt fresh consolidation beneath here. However, oversold daily stochastics are unwinding, pointing to room for a break and continuation towards 158.00, where negative weekly charts are expected to promote renewed selling interest. Following corrective gains, fresh losses are looked for. A later break below 155.00 will open up further congestion around 154.00. But a close below 152.00 is needed to turn sentiment negative and extend late-April losses to 151.00. Continuation down to the 150.25 Fibonacci retracement cannot be ruled out.