Forex Trading Technical Analysis (2010/07/29) USD/JPY Bearishness Approaches 7-Month Low
(Please click on the forex chart thumbnail to enlarge)
7/29/2010 Forex Trading Technical Analysis (FXpath.com) – USD/JPY (a 4-hour chart of which is shown) as of Thursday (7/29/2010) has once again descended to approach the 7-month low in the 86.25 price region that was just established in mid-July and confirmed with a double-bottom low just a week later. This occurs within the context of a strong overall downtrend for the pair. Currently, price has just dropped down from a confluence of resistance, including both a key downtrend resistance line extending from the early June high as well as an important horizontal resistance level around the 88.00 price region. If price carries the continued bearish momentum to drop below the noted 7-month double-bottom low around 86.25, a continuation of the strong current downtrend will have been confirmed, with a further key downside support target in the 85.00 price region.
UPDATE: AS OF FRIDAY (7/30/2010) MORNING, PRICE ACTION HAS DROPPED DOWN TO ESTABLISH A NEW 8-MONTH LOW. A KEY DOWNSIDE SUPPORT TARGET CONTINUES TO RESIDE IN THE 85.00 PRICE REGION.
(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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