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Chart of the Day - 7/24/2009 – USD/JPY

(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.)

7/24/2009 – USD/JPY – Price action on USD/JPY, a daily chart of which is shown, has bumped up against the dynamic resistance imposed by a steep downtrend line within the context of a significant parallel downtrend channel. If this intermediate downtrend line is broken significantly to the upside, which would be evident on a breakout above the last high at 95.30, the clear upside resistance target would be around the top border of the parallel downtrend channel. On any move down within this channel, whether immediately or after reaching the top of the channel, a major downside support target resides in the key 91.00 price region.

James Chen, CMT
Chief Technical Strategist
FX Solutions

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