Monday October 20, 2008 - 15:21:22 GMT
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Chart of the Day - 10/20/2008 - USD/JPY
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; downtrend lines in red; horizontal support/resistance levels in yellow; chart pattern in grey; 50-period simple moving average in light blue.)
10/20/2008 â€“ USD/JPY â€“ Like several other currently consolidating pairs, the USD/JPY has recently been forming a significant triangle pattern consolidation. Any strong breakout of this triangle, whether to the upside or downside, should represent a significant breakout trading opportunity. There is a slight bias for an eventual break to the downside, since triangles are often considered continuation patterns, and the trend preceding the triangle was clearly a downtrend. In the event of a breakdown below the bottom border of this triangle, the next major support to the downside resides around the 98.50 price region, a significant prior support/resistance level. A clean break to the upside, on the other hand, should likely target strong upside resistance around the level of the downtrend resistance line (in red).
Chief Technical Analyst
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