USD/JPY (a 4-hour chart of which is shown) as of Tuesday (7/20/2010) morning, has formed a pennant-like retracement/consolidation formation within a strong downtrend. This potentially bearish retracement/consolidation pattern occurs right around the key 87.00 support/resistance region. For more USD/JPY analysis, please click here.

 (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.)

James Chen, CTA, CMT