Published: 2024-05-08T13:46:15.000Z
Chart EUR/JPY Update: Higher in JPY-driven trade, but background studies leaning lower
Senior Technical Strategist
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Cautious gains are gaining traction in JPY-driven trade
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 170.00 | ** | figure | S1 | 166.00 | * | congestion | |
R3 | 169.39 | * | 26 Apr (w) high | S2 | 165.00 | * | congestion | |
R2 | 168.00 | * | congestion | S3 | 164.00 | * | break level | |
R1 | 167.39 | 2 May high | S4 | 163.00 | * | congestion |
Asterisk denotes strength of level
14:35 BST - Cautious gains are gaining traction in JPY-driven trade, with prices approaching resistance at the 167.39 high of 2 May. Intraday studies are overbought, suggesting initial tests could give way to consolidation. However, oversold daily stochastics are unwinding, highlighting potential for a break towards 168.00, where the bearish daily Tension Indicator and falling weekly charts could prompt fresh selling interest. Following corrective gains, fresh losses are looked for, with a later break below 166.00 opening up further congestion around 165.00. However, a close below 164.00 is needed to turn sentiment negative once again and extend losses below 163.00 towards the 162.40 Fibonacci retracement.