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Chart of the Day

Chart of the Day – USD/JPY

Thu, Jul 30 2009, 16:49 GMT
by James Chen

FX Solutions

(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.)

7/30/2009 – USD/JPY – Within the context of a significant parallel downtrend channel, price action on USD/JPY, a daily chart of which is shown, has formed a counter-trend support trendline. The parallel downtrend channel extends from the 4/6/2009 major high, and price is currently approaching the top border of this channel. Since this pair is currently entrenched within a clear downtrend, the event to watch for from a high-probability, trend-trading perspective, would be any breakdown of the counter-trend support uptrend line that extends from the 7/13/2009 low. In this event, a clear downside support target resides in the key 91.00 support/resistance price region. Any breakout above the parallel downtrend channel should meet immediate further resistance around the 97.00 level, and then further up at around the 99.70 price region.

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Published on  Thu, Jul 30 2009, 16:51 GMT