Technical Trading Tips and Techniques by 
As of Tuesday (4/28/2009) morning, substantially bearish price action on USD/JPY, a daily chart of which is shown, has continued its bearishness all the way down to, and tentatively below, strong support in the key 96.00 price region. This occurs after price broke down cleanly below an important uptrend support line late last week. Currently stalled around the 96.00 support/resistance level, further bearishness in this pair could very well target significant support to the downside around the 94.50 level. And any true breakdown below that level should confirm a major change in trend. To the upside, the short-term downtrend resistance line that price has adhered to since the 101.43 swing high was reached three weeks ago should serve as strong dynamic resistance.
UPDATE: As of Tuesday (4/28/2009) after the close of New York session, USD/JPY has retraced much of the bearishness it had experienced in the very early morning hours. By the New York close, the pair had already risen substantially above the 96.00 level. More updates to come as price action develops into Wednesday.
James, couldy you comment on the oversold readings in the Stochastics? I’m also curious to get your thoughts on RSI and MACD figures as well. Things look set for a turn around in my review of these indicators and I’d like to get your insights on this too.
Thanks - Joe
Hi Joe!
Thanks for your comments. You’re absolutely right, those oversold readings did in fact contribute to a tentative turn around. Great observations, Joe!
James Chen