(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.

James Chen

Chief Technical Analyst

FX Solutions

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