Chart of the Day - 3/04/2010 – EUR/JPY

3/04/2010 – EUR/JPY – Price action on EUR/JPY, a daily chart of which is shown, has consolidated in a sideways pattern for the last week between two key support/resistance price regions: 122.00 and 119.50, the latter level representing a 1-year low for the pair. This consolidation occurs within the context of a strong downtrend and after price broke down below a flag-like consolidation above 122.00. Currently, any strong breakdown below the current consolidation (119.50 price region) could target further major downside support around the 116.00 price region. Upside resistance within the context of the current consolidation and overall downtrend continues to reside around the noted 122.00 price region.
 

James Chen, CMT
Chief Technical Strategist
FX Solutions
 

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(Chart courtesy of FX Solutions' FX AccuCharts. 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.)