Published: 2024-05-02T13:30:52.000Z
Chart EUR/JPY Update: Consolidating after volatile trade - studies under pressure
Senior Technical Strategist
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Sharp losses have bounced from 164.00 to reach 167.40
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 170.00 | * | figure | S1 | 165.35 | * | 20 Mar (m) high | |
R3 | 169.39 | * | 26 Apr (w) high | S2 | 165.00 | * | congestion | |
R2 | 168.00 | * | congestion | S3 | 164.00 | * | break level | |
R1 | 166.00 | * | congestion | S4 | 162.27 | ** | 12 Apr (m) low |
Asterisk denotes strength of level
14:20 BST - Sharp losses have bounced from 164.00 to reach 167.40, where negative intraday studies are prompting fresh selling interest. Prices are currently balanced around 165.50, but negative daily readings and unwinding overbought weekly stochastics highlight a deterioration in sentiment and room for further losses in the coming sessions. A close below the 165.35 monthly high of 20 March and congestion around 165.00 will confirm a near-term top in place at the 171.60~ current year high of 29 April, and add weight to sentiment and focus then turns back to 164.00. A close beneath here will open up the 162.27 monthly low of 12 April. Meanwhile, a close above congestion resistance at 166.00 will turn sentiment neutral and prompt fresh consolidation beneath further congestion around 168.00.