(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; chart patterns in white; 50-period simple moving average in light blue.)
8/11/2009 € EUR/JPY € After approaching resistance in the 139.00 price region, price action on EUR/JPY, a daily chart of which is shown, has respected that resistance zone by beginning a possible reversal of the short-term uptrend that has been in place since early July. This bearish turn has manifested itself in a tentative breakdown of a significant uptrend support line. In the event of a close and bearish continuation of the breakdown below this trendline, a clear support target further to the downside resides in the key 131.00 price region. Major upside resistance continues to reside in the 139.00 price region.
James Chen, CMT
Chief Technical Strategist
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