(Please click on the accompanying chart to enlarge.)
Price action on the USD/JPY 4-hour chart, as shown, has approached and retreated today from a key resistance level around 108.40-108.50. At the same time, a short-term uptrend support line has formed. These two levels, to the upside and the downside, should now represent the short-term support/resistance levels to watch for in terms of potential breaks or bounces. Any strong and clean break of upside resistance, especially, should represent a solid potential breakout opportunity.
- James
James Chen is the Chief Technical Analyst at FX Solutions, a leading Forex broker. He is also a registered Commodity Trading Advisor (CTA) and a Chartered Market Technician (CMT) Level 3 candidate. At FX Solutions, Mr. Chen writes daily currency analysis, conducts forex trading seminars, and has authored numerous articles on currency trading and technical analysis for major financial publications. His upcoming book, Essentials of Foreign Exchange Trading (John Wiley & Sons), will be released in early 2009.
Technical Trading Tips and Techniques by 
