Published: 2024-04-30T13:13:10.000Z
Chart EUR/JPY Update: Immediate gains to remain limited
Senior Technical Strategist
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Consolidation is giving way to a fresh test higher
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 173.25 | ** | September 1992 high | S1 | 168.00 | * | congestion | |
R3 | 171.60~ | ** | 29 Apr YTD high | S2 | 166.00 | * | congestion | |
R2 | 170.00 | * | figure | S3 | 165.35 | * | 20 Mar (m) high | |
R1 | 169.39 | * | 26 Apr (w) high | S4 | 165.00 | * | congestion |
Asterisk denotes strength of level
14:00 BST - Consolidation is giving way to a fresh test higher, as oversold intraday studies unwind, with prices trading back above 168.00. Focus is turning to the 169.39 weekly high of 26 April, but unwinding overbought daily stochastics and the flattening bullish daily Tension Indicator are expected to limit any initial tests in further consolidation. Broader weekly charts continue to rise, but a close above here is needed to turn sentiment positive once again and put focus on critical resistance at the 171.60~ current year high of 29 April. Meanwhile, a close back below 168.00 would turn sentiment neutral and open up a pullback towards congestion support at 166.00.