USD/JPY Drop Traverses Bullish Channel

USD/JPY (4-hour chart) as of Friday (7/08/2011) has been moving in a general consolidation framed by a slightly bullish channel. On the heels of the Non-Farm Payrolls report, price action dropped from the very top of this channel down to approach the very bottom before making a slight bounce. This drop occurs after price action was unable to sustain an upside breakout above a key bearish resistance trendline. In the event that bearish price action resumes with a breakdown below the current channel, a key downside target resides around the 79.50 price region, which represents the area of the significant low hit in early May.

(Click on chart to enlarge. Forex chart key: price on 1st pane, Stochastics 14,3,3 on 2nd pane; horizontal support/resistance levels in black; uptrend lines in green; downtrend lines in red; 50-period simple moving average (SMA) in orange; 100-period SMA in brown; 200-period SMA in dark blue; Fibonacci levels in magenta.)

James Chen, CTA, CMT
Director of Technical Research and Education
FXDD

USD/JPY Pushes to the Upside

USD/JPY (4-hour chart) as of Monday (6/27/2011) has broken out of a symmetrical triangle consolidation pattern extending back to the end-of-May high, which resides within a larger consolidation that has been in place for the last two months. The current triangle consolidation breakout has not been particularly strong, but it represents a bullish indication that hints of further bullishness potentially to come. In the event of a strong subsequent breakout above resistance around the 81.00 price region, followed by a breakout above the next downtrend resistance line to the upside (which represents the top of the larger consolidation), the key upside resistance target resides around the 83.00 price region.

(Click on chart to enlarge. Forex chart key: price on 1st pane, Stochastics 14,3,3 on 2nd pane; horizontal support/resistance levels in black; uptrend lines in green; downtrend lines in red; 50-period simple moving average (SMA) in orange; 100-period SMA in brown; 200-period SMA in dark blue; Fibonacci levels in magenta.)

James Chen, CTA, CMT
Director of Technical Research and Education
FXDD

Webinar Rebroadcast: Charting the Majors with James Chen

Please click on the following link to access the rebroadcast of today’s Charting the Majors with James Chen: https://www1.gotomeeting.com/register/465572601 .

Charting the Majors with James Chen Rebroadcast

Please click on the following link to access the rebroadcast of today’s Charting the Majors with James Chen: https://www1.gotomeeting.com/register/335262736 .

USDJPY moves above trendline resistance. 80.68 support now

The USDJPY has moved above trendline resistance today at the 80.68 level and next has the 80.96 level as the target for the pair. The bulls would like to see the price stay above the trendline today to keep the bias in tact. A move above 80.96 opens the window for additional upside potential for the pair.

On the hourly chart the pair has also shown some additional bullish confirmation with the break above the topside trendline in the channel (see chart above).  That level comes in at 80.79

The NY Opening Forex Commentary for June 7th

NY Evening Forex Commentary for June 6th 2011

The Midday Forex Commentary for June 6th 2011

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