(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; 50-period simple moving average in light blue.)
7/15/2009 € USD/JPY € Bullish price action in the last few trading days on USD/JPY, a daily chart of which is shown, rebounded off the bottom border of a parallel downtrend channel, and has just reached major resistance in the 94.00 price region as of Wednesday (7/15/2009). This is a key support/resistance level, as it has served alternately as strong resistance and strong support since the beginning of the year. Any clean breakout above this level should carry the bullish momentum to target further significant resistance around the 96.00 price region, and then the top of the parallel downtrend channel. Downside support in the event that 94.00 is respected continues to reside at or around the bottom of the channel, as well as the key 91.00 support/resistance region.
James Chen, CMT
Chief Technical Strategist
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