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Price action on USD/CAD has entrenched itself in a horizontal, converging consolidation. Bounded in a triangle-like formation by an uptrend support line on the bottom and a downtrend resistance line on the top, the pair is poised to make a substantial directional move. For the technicals on this currency pair, please click here for Thursday’s Chart of the Day.

UPDATE: As of early Friday in New York, price on this pair has respected the uptrend support line, and instead broke out above the downtrend resistance line. Now approaching further resistance in the 1.2750 region, if this level is broken through significantly, price could very well go on to re-test the triple-tested highs around 1.3000.

The big news of the past several days, of course, has been the substantial weakening of the yen. Perhaps nowhere is this more evident than on the USD/JPY, a daily chart of which is shown. The pair has reached and stalled, as of Thursday morning, around the key 98.00 support/resistance level. A double bottom reversal has already been confirmed. With continued bullish momentum, the major 100.00 price region is within target. Support to the downside continues to reside in the 94.50 region.

Though it can technically be considered in a medium-term downtrend since the beginning of the year, EUR/GBP has continued to respect an uptrend support line extending from the late October low just below 0.7700. Therefore, the pair is currently still entrenched in a longer-term uptrend until any substantial breakdown of this trendline occurs. For the technicals on this key cross, please click here for Wednesday’s Chart of the Day.

Consolidating price action on USD/CAD, a daily chart of which is shown, has been adhering closely to a key uptrend support line extending from the swing low in late September. Moderately bearish within the last week or so, this pair has stalled at uptrend support, but may go on eventually to make a bonafide breakdown of this line. In this event, strong support to the downside resides in the 1.2100 price region, a major prior support/resistance level. To the upside, a true breakout of the downtrend resistance line (currently in the 1.2600 area) should meet further resistance in the 1.2750 region, another important prior support/resistance level.

Marked bullishness on USD/JPY, a daily chart of which is shown, has broken cleanly above the previously noted 94.50 resistance region, and has gone on to take out further resistance levels well above. This includes a key downtrend resistance line extending from the August 2008 highs. Tentative confirmation of a bullish double-bottom reversal is currently in the making, as price has exceeded the peak between the two extreme lows around 87.00. With any further bullish momentum that takes out the 98.00 level, price could target further resistance in the major 100.00 price region.

Price action on the displayed EUR/GBP daily chart has reverted once again back to the dynamic support offered by a key uptrend support line extending from the late October low just below 0.7700. After hitting a peak of 0.9800 in late December, price has fallen in a series of bearish waves with substantial bullish retracements, through support level after support level. At the current juncture, if the uptrend support holds and price bounces, the 0.9070 region should serve as significant upside resistance. Any breakdown below the current uptrend line should meet immediate further support in the 0.8650 price region.

Price action on USD/JPY has risen substantially up to key resistance in the 94.50 region. For the technicals on this currency pair, please click here for Thursday’s Chart of the Day.

After breaking down cleanly below the uptrend support line extending from the long-term low hit in late October, price action on EUR/USD, a daily chart of which is shown, has pulled back up to the line, which should now act as some resistance for the pair. To the downside, any subsequent breakdown below the 1.2500 region should confirm a continuation of the downtrend.