(Please click on the accompanying chart to enlarge.)
As of very early Wednesday (New York session), price on the USD/JPY daily chart, as shown, has once again come close to approaching key support around the 108.50 region this morning during European session. If one looks closely at the last 3 weeks of price action on this chart, one might discern a rough head-and-shoulders pattern, possibly hinting at a potential turning point in the general uptrend. The neckline would be around the 108.50 level. If this line is broken in a decisive manner, further support to the downside may be found around the 107.30 region.
- 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.
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