Forex Trading Technical Analysis (2010/08/23) EUR/JPY Breaks Down Further off Triangle
(Please click on the forex chart thumbnail to enlarge)
8/23/2010 Forex Trading Technical Analysis (FXpath.com) – EUR/JPY (a 4-hour chart of which is shown) as of Monday (8/23/2010) has furthered its bearish drop after breaking down below a large descending triangle late last week. The continued bearishness after this triangle breakdown has closely approached the multi-year low at 107.30 that was hit in late June. The now-broken 109.00 price region should serve as upside resistance for the current bearishness. In the event of a breakdown below the noted 107.30 long-term low, which would confirm a continuation of the current overall downtrend, a key immediate downside support target resides in the 106.00 price region, which corresponds with a 161.8% Fibonacci extension of the last major bearish run.
(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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