Published: 2024-04-26T13:55:11.000Z
Chart EUR/JPY Update: Fresh highs, but daily stochastics overstretched
Senior Technical Strategist
1
Cautious trade has given way to a sharp JPY-driven break higher to 168.3
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 169.97 | ** | July 2008 multi-year high | S1 | 166.00 | * | figure | |
R3 | 169.45 | * | 7 Aug 2008 high | S2 | 165.00/35 | * | congestion; 20 Mar (m) high, | |
R2 | 168.35 | intraday high | S3 | 164.30 | * | Nov high | ||
R1 | 168.00 | * | congestion | S4 | 163.70 | Feb high |
Asterisk denotes strength of level
14:40 GMT - Cautious trade has given way to a sharp JPY-driven break higher to 168.35, where overbought intraday studies are prompting fresh reactions. The daily Tension Indicator continues to strengthen, suggesting potential for a break above here and continuation towards the 169.45 high of 7 August 2008. However, flattening overbought daily stochastics could prompt profit-taking towards here and limit any initial tests in consolidation. Meanwhile, support is at 166.00. A close beneath here would turn sentiment neutral. But a further close below 165.00/35 is needed to turn price action negative and confirm a deeper pullback.