(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.)
4/30/2009 € USD/JPY € After breaking down below a key uptrend support line late last week, price action on USD/JPY, a daily chart of which is shown, dropped below major support in the 96.00 price region before displaying some dramatic bullishness by regaining all of the losses it had made after the trendline breakdown. Currently, price is right around the dynamic level of the broken uptrend support line, which also currently coincides with a short-term downtrend resistance line that extends from the last major swing high at 101.43. In the event of a significant breakout above both of these trendlines, price could easily target immediate further resistance around the key 99.65-100.00 region. Any breakout above that zone should shoot for a retest of 101.43. Downside support continues to reside in the key 96.00 support/resistance region.
James Chen, CMT
Chief Technical Strategist
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