Technical Trading Tips and Techniques by 
( Please click on the accompanying chart to enlarge.)
As noted on Thursday’s Chart of the Day (click here), if price broke down below the medium-term uptrend channel (which it ultimately did late on Thursday), price would target key support to the downside around the 105.50 area. As it turned out, price did in fact hit 105.52 Friday morning before bouncing back up. Going forward, the broken channel support line should now act as some sort of resistance to the upside (support becomes resistance). Downside support continues to reside around the 105.50 region for the near-term. More updates to come as price action develops further.
- 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
Hi James,
Do you observe usd/yen form’s wedge, if it than, support and resistance is very near,i am looking for 109.25/109.50 as resistance and 107.80/107.30 as support levels. what do you think.
Hi St_Fx,
Thanks for your comment and observation! I’m not actually seeing what you’re seeing. Which timeframe are you looking on? Thanks.
- James
both daily and weekly charts
Hi St_Fx,
Yes, I see that wedge that was tentatively broken down, and I have the same support region, but I don’t see the same resistance.
- James
correct me if I’m wrong , i am looking this as bounce for larger decline , invalidate if break of upside resistance 109.50 or 110.00 level and correct when 107.30/107.00 breaks below.
its 8/15 and 8/25 highs that develops presser line form 8/15, 110.64 high’s.
I see. I believe you are referring to a triangle, not a wedge. If that is the case, yes, then I see your point. The wedge that I see is different, but the triangle is what you described, I believe.
- James