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Forex Trading Technical Analysis (2010/07/13) EUR/JPY At Top of Parallel Downtrend Channel

EUR/JPY (a 4-hour chart of which is shown), as of Tuesday (7/13/2010), has reached up to short-term resistance in the 112.50 price region, which also coincides with the top of a well-formed parallel downtrend channel extending from late May. On the 4-hour chart, this parallel downtrend channel has a total of five upper touches and five lower touches. For more EUR/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