Monday July 21, 2008 - 15:16:05 GMT
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Chart of the Day - 7/21/2008 - GBP/JPY
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend line in green; horizontal support/resistance line in yellow; 200-period simple moving average in light blue.)
7/21/2008 â€“ GBP/JPY â€“ Price action on the GBP/JPY daily chart, as shown, has once again bumped right up against a very significant resistance line in the 213.80-214.00 region. This line has been hit at least 5 times since the beginning of the year, and thus represents strong selling pressure at this level. Any true break to the upside, therefore, would be a significant event that should target additional resistance in the 217.00 region. From purely a technical perspective, however, there is a slight bias towards an impending turn back down at or near this robust resistance level. Oscillators like the displayed Stochastics, which are deep in overbought territory and starting to turn, are also lending some strength to this view. If this turn indeed occurs, clear major support to the downside resides around the green uptrend line from which price bounced just last week.
Chief Technical Analyst
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