(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 line in yellow; Fibonacci retracements in white; 200-period simple moving average in light blue.)
6/27/2008 – USD/JPY – Price on the USD/JPY daily chart, as shown, has just touched a key short-term uptrend support line (represented on the chart in green). This uptrend line has provided support for the pair since mid-March. A clean breakdown of this line would target further support at the long-term downtrend line (in red), which acted as downtrend resistance for about a year before being broken to the upside earlier this month. If, however, USD/JPY has enough resilience to make a clear bounce up off the current uptrend support line in the next few days, price should target clear resistance in the 108.50 region, a significant previous support/resistance level.
Chief Technical Analyst
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.