(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; downtrend line in red; uptrend line in green; horizontal support/resistance level in yellow; 200-period simple moving average in light blue.)
6/24/2008 – USD/JPY – In the past several days, price action on the USD/JPY daily chart, as shown, has enforced a rather precise resistance level around 108.50-108.60. This level is represented on the accompanying chart by the yellow horizontal line. If this significant resistance holds within the next several days, in the absence of any fundamentally-driven breakout, traders will be looking for a bearish impending move. This outlook is strengthened by oscillators like the displayed Stochastics, which are emerging down from extremely overbought. Support to the downside resides first at the green uptrend support line, and then at the red long-term downtrend line, which acted as resistance before price broke out above it earlier this month.
Chief Technical Analyst
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