James Chen
10-20-2008, 09:20 AM
10/20/2008 – USD/JPY – Like several other currently consolidating pairs, the USD/JPY has recently been forming a significant triangle pattern consolidation. Any strong breakout of this triangle, whether to the upside or downside, should represent a significant breakout trading opportunity. There is a slight bias for an eventual break to the downside, since triangles are often considered continuation patterns, and the trend preceding the triangle was clearly a downtrend. In the event of a breakdown below the bottom border of this triangle, the next major support to the downside resides around the 98.50 price region, a significant prior support/resistance level. A clean break to the upside, on the other hand, should likely target strong upside resistance around the level of the downtrend resistance line (in red).
James Chen
Chief Technical Analyst
FX Solutions
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; downtrend lines in red; horizontal support/resistance levels in yellow; chart pattern in grey; 50-period simple moving average in light blue.)
James Chen
Chief Technical Analyst
FX Solutions
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; downtrend lines in red; horizontal support/resistance levels in yellow; chart pattern in grey; 50-period simple moving average in light blue.)