(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.)
9/01/2009 - USD/JPY - Price action on USD/JPY, a 4-hour chart of which is shown, has been entrenched within a steep parallel downtrend channel since an 8-week high was hit on 8/7/2009. Currently, price has consolidated near the upper border of this bearish channel. A key event to watch for would be a breakdown of the short-term uptrend support line which is currently running counter to the prevailing trend, and which potentially represents a correction/consolidation within the overall downtrend. In the event of a substantial breakdown below this short-term uptrend line, a key downside support target resides around the 91.75 price region, which was triple-tested in early July before the pair made a significant bullish run. In the opposite event of a breakout above the current parallel downtrend channel, several upside resistance targets are in focus, including the 95.30 price region.
James Chen, CMT
Chief Technical Strategist
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