(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; downtrend line in red; chart patterns in white; 50-period simple moving average in light blue.)
2/13/2009 – EUR/JPY – After hitting a new 7-year low around 112.00 in late January, and then breaking out above a subsequent triangle consolidation, price action on EUR/JPY (a daily chart of which is shown) has formed a classic pullback move back to the triangle. After doing so, the pair then bounced cleanly up off the triangle and currently appears to be heading higher. A continuation on this pullback would only be confirmed on a breakout of precisely 120.00, which is the high that was reached before pullback. If this break occurs, significant further resistance resides around 122.00, the approximate level of the last significant swing high and the topmost corner of the triangle. Near-term support can be found around the 116.50 price region, a significant prior support/resistance level.
James Chen, CMT
Chief Technical Strategist
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