(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.)
4/07/2009 € EUR/JPY € As noted on last week€™s Chart of the Day for EUR/JPY (4/01/2009), price had turned up the bottom of a current parallel uptrend channel, and was targeting resistance in the 137.00 price region. As it turns out, price reached all the way up to 137.40, which coincided with the top of the parallel uptrend channel, before falling back down today in what now appears to be a normal correction in the overall bullish trend. There is substantial room to the downside in which price can move while still keeping the current uptrend intact. Immediate support to the downside resides in the major 131.00 support/resistance region, and then lower down at the bottom of the mentioned parallel uptrend channel. Conversely, in the event of a re-break above the 137.40 channel high, for a potential acceleration of the uptrend, further major resistance resides in the 141.00 price region.
James Chen, CMT
Chief Technical Strategist
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