Forex Trading Technical Analysis (2010/08/18) EUR/JPY Forms Descending Triangle
(Please click on the forex chart thumbnail to enlarge)
8/18/2010 Forex Trading Technical Analysis (FXpath.com) – EUR/JPY (a 4-hour chart of which is shown) as of Wednesday (8/18/2010) has formed a descending triangle consolidation just above 109.00 after having broken down cleanly below a parallel uptrend channel extending from the June low just last week. This all occurs within the context of a longer-term downtrend extending from the October 2009 high. Although price has been in somewhat of a sideways consolidation since around May of this year, the current directional bias still appears to be to the downside for the time being. In the event that there is a breakdown below key 109.00 support, which is around the bottom of the triangle, a key downside support target resides in the 107.50 price region. In the opposite event of an upside triangle break, price could potentially reach up to target 111.00 resistance.
(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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