(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; downtrend lines in red; 50-period simple moving average in light blue.)
5/01/2008 – USD/JPY – Within the context of the long-term downtrend channel (with its dotted line channel extension) on the USD/JPY daily chart, as shown, price action has been marked by consistent breakdowns of short-term, intra-channel uptrends (represented on the chart by the green lines). The current short-term uptrend may be no different. Technical traders are waiting to act upon any clean and fast breakdown of this intra-channel trend, which is well-defined and rather steep. Oscillators like the displayed Stochastics are supporting this possibility of a bearish break, as price is emerging down from severely overbought territory. In the event of this breakdown, major support to the downside resides in the 101.50 region, which is a significant historical support/resistance zone.
Chief Technical Analyst
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