New York
London
Tokyo
Chart Of The Day | Forex Chart Analysis | James Chen
Join James Chen, FX Solutions\' Lead Technical Analyst, each day as he provides commentary for a given currency pair chart setup.

USDJPY | Break Triangle Consolidation | March 15, 2011

USDJPY_Chart_March15_2011
(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.)

3/15/2011 – USD/JPY – Price action on USD/JPY (a daily chart of which is shown) as of Tuesday (3/15/2011) has dropped substantially to breakdown decisively below a triangle consolidation pattern that has been in place since the 80.20 area low, which represents the 15-year low that was hit on the last day of October 2010.

Price is currently very close to re-testing that extreme support level once again. Monday’s price action approached 80.20 before quickly correcting back up to the bottom of the triangle, but Tuesday morning’s price action is indicating that bearish momentum on the triangle breakdown indeed appears to be prevailing.

In the event of a breakdown below the noted 80.20 long-term low, price could target an immediate re-test of the 1995 all-time low of 79.75, followed by a further downside target in the 77.50 price region, which is around the 161.8% Fibonacci extension of the most recent major bullish run.

Tagged as: , ,

SocialTwist Tell-a-Friend

Leave a Response

Trading Metro
Disclaimer

Before diving into the legalese below, use your common sense when trading. Rely on yourself to define trade execution, don't trade with money you cannot afford to lose, and know the risks of trading. Be responsible, be honest, and use common sense.

Online trading, especially that on margin carries a high level of risk and may not be suitable for all investors. Opinions expressed at Trading Metro are those of the independent authors and do not necessarily represent the opinion of Trading Metro. Trading Metro has not verified the accuracy of any claim or statement made by any independent author. It's your responsibility to ensure the veracity of information presented.

Any solutions, opinions, news, research, analyses, prices or other information contained on this website, by Trading Metro, its employees, partners or contributors, is provided as general market commentary and tools, and does not constitute investment advice. Trading Metro will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Information on Trading Metro is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on Trading Metro is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy and our Privacy Notice.

Feedback Form