(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; Fibonacci retracements in grey; 50-period simple moving average in light blue.)
3/24/2009 € EUR/JPY € By breaking out cleanly above the key 131.00 (peak-between-troughs) resistance level on Monday, price action on EUR/JPY, a daily chart of which is shown, has tentatively confirmed a large double-bottom formation with the potential for further upside momentum. The 131.00 level should now serve as support where it previously served as resistance on at least three separate occasions before Monday€™s break. Retracement and consolidation can be expected after the breakout, but if price is able to follow-through further and break above the 134.50 level, which represents the high thus far after the 131.00 breakout, a major resistance target to the upside resides around the 137.00 region.
James Chen, CMT
Chief Technical Strategist
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