(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)
3/18/2009 € USD/JPY € USD/JPY, a daily chart of which is shown, has consolidated in the form of a sizeable flag pattern after confirming a bullish reversal last month. Currently, price resides around the top border of the flag. As flags are often considered continuation patterns, any subsequent breakout above the top border should confirm a bull market continuation with immediate resistance in the key 100.00 region. Major resistance above this resides around 102.50. To the downside, the 96.00 region remains as strong support within the context of the current uptrend.
James Chen, CMT
Chief Technical Strategist
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