(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.)
11/24/2009 – USD/JPY – Bearish price action on USD/JPY, a daily chart of which is shown, has just made a new 6-week low and is currently targeting a re-test of the key 88.00 support level, which was last hit in early October. This occurs after price broke down below a triangle consolidation pattern in mid-November. Overall, this currency pair is firmly entrenched within a parallel downtrend channel extending from the April high at 101.43, and the general bias within this channel continues to be bearish. Any breakdown below the strong support at 88.00 should easily shoot for an immediate further support target in the 87.00 price region, which represents key support from the long-term double-bottom low that occurred in the beginning of the year. On a longer-term basis, with continued bearishness in the pair, a potential downside target resides in the 84.00 price region.