(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.)
9/02/2009 – EUR/JPY – Price action on EUR/JPY, a daily chart of which is shown, has dropped back down to touch strong support in the 131.00 price region. In the process, price has also tentatively poked down below an uptrend support line extending from the January low. A trendline breakdown and continued bearish bias would be confirmed on a substantial breakdown below the 131.00 support level, which would be a significant bearish event for the pair. In that event, a major downside support target clearly resides in the 127.00 price region, which has been a well-respected, key level in recent months. Dynamic upside resistance currently resides around the short-term downtrend resistance line extending from the second test of the 139.00 region in early August.
James Chen, CMT
Chief Technical Strategist
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