Published: 2024-05-07T13:30:15.000Z
Chart EUR/JPY Update: Limited gains
Senior Technical Strategist
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Cautious tests higher have reached 166.50
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
14:20 BST - Cautious tests higher have reached 166.50, where overbought intraday studies are prompting short-term reactions. A tick higher in oversold daily stochastics suggests potential for a test above here. However, the bearish daily Tension Indicator and deteriorating weekly charts should prompt fresh selling interest towards the 167.39 high of 2 May. Following cautious trade, price action is expected to turn lower once again. Support is down to 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.