Forex Technical Analysis (2010/06/30) GBP/JPY Breaks Down Uptrend Line, Falls to Support
(Please click on the forex chart thumbnail to enlarge)
6/30/2010 Forex Technical Analysis (FXpath.com) – GBP/JPY, a daily chart of which is shown, has broken down below an uptrend support line extending from the May low. This uptrend line represents a bullish correction within a larger parallel downtrend channel extending from the August 2009 high. The breakdown of this intra-channel uptrend support line is a significant bearish indication for this currency pair. As of Wednesday, 6/30/2010, price has descended to a key support level in the 132.00 price region. Any strong further breakdown and close below 132.00 should confirm the overall bearishness in this pair, and could potentially prompt price to begin targeting the 15-month low around 126.70 that was just hit in May.
(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)
James Chen, CTA, CMT (bio)
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