5/30/2008 – USD/JPY Daily Chart

(Price on 1st pane, Slow Stochastics on 2nd pane; downtrend line in red; Fibonacci retracements in grey; 50- period simple moving average in light blue.)

5/30/2008 – USD/JPY – Price action on the key USD/JPY daily chart, as shown, has reached a critical resistance level. This level is in the form of a significant long-term downtrend line (represented on the chart by the long, red line), which has provided downtrend resistance since the multi-year high in the pair was reached in June of 2007.

A turn back down or at least consolidation at or near this line would be a reasonable outlook from a technical perspective. Current dollar fundamentals would also lend some strength to this bearish outlook. In the event of an impending turn at or near the resistance line, the next major support to the downside resides in the 102.50 region, which has established itself as a significant support level in the last month or so.

A fundamentally-driven break to the upside, on the other hand, would target strong resistance around the historically significant 109.00 level.

James Chen

Chief Technical Analyst, FX Solutions

To download the latest version of FX AccuCharts 7.0, please click here: Download FX AccuCharts 7.0

*IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.

5/30/2008 – USD/JPY Daily Chart

(Price on 1st pane, Slow Stochastics on 2nd pane; downtrend line in red; Fibonacci retracements in grey; 50- period simple moving average in light blue.)

5/30/2008 – USD/JPY – Price action on the key USD/JPY daily chart, as shown, has reached a critical resistance level. This level is in the form of a significant long-term downtrend line (represented on the chart by the long, red line), which has provided downtrend resistance since the multi-year high in the pair was reached in June of 2007.

A turn back down or at least consolidation at or near this line would be a reasonable outlook from a technical perspective. Current dollar fundamentals would also lend some strength to this bearish outlook. In the event of an impending turn at or near the resistance line, the next major support to the downside resides in the 102.50 region, which has established itself as a significant support level in the last month or so.

A fundamentally-driven break to the upside, on the other hand, would target strong resistance around the historically significant 109.00 level.

James Chen

Chief Technical Analyst, FX Solutions

To download the latest version of FX AccuCharts 7.0, please click here: Download FX AccuCharts 7.0

*IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.

5/29/2008 – EUR/GBP Daily Chart*

(Price on 1st pane, Slow Stochastics on 2nd pane; uptrend line in green; horizontal support/resistance levels in yellow; 50-period simple moving average in light blue.)

5/29/2008 – EUR/GBP – Like the other euro crosses, EUR/GBP (the daily chart of which is shown), is mired in somewhat of a horizontal range consolidation. This occurs after an impressive uptrend run that began late last year and culminated in a very long-term high at around 0.8095, which was double-tested in mid-April (represented by the short yellow line on the top).

Currently, price is approaching significant uptrend support, represented by the long green line. This dynamic line is relatively strong, and should provide some considerable price support moving forward. Slightly below this, further support resides at the bottom of the horizontal range around 0.7760 (represented by the longer yellow line).

Oscillators like the displayed Stochastics are lending strength to this potentially bullish outlook, as they have just approached oversold. In the event of an upturn at or near the uptrend support line, major resistance clearly resides in the region of the aforementioned double-tested high around 0.8095.

James Chen

Chief Technical Analyst, FX Solutions

To download the latest version of FX AccuCharts 7.0, please click here: Download FX AccuCharts 7.0

*IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.

(Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; horizontal support/resistance
levels in yellow; 200-period simple moving average in light blue.)

5/28/2008 – EUR/USD – Within the context of the current horizontal consolidation range on the EUR/USD daily chart, as shown, price has formed a short-term uptrend bounded by two short parallel lines (in dotted green).

Traders that are betting on a dollar recovery, or at least a retracement, are waiting for a clean breakdown of the uptrend support line. In this event, strong support resides around the base that has formed within the last couple of months in the 1.5280 region.

Oscillators like the displayed Stochastics are lending strength to this downward bias, as they are emerging down below the 80 line from heavily overbought.

James Chen

Chief Technical Analyst, FX Solutions

To download the latest version of FX AccuCharts 7.0, please click here: Download FX AccuCharts 7.0

*IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.