6/24/2008 – USD/JPY Daily Chart*

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

6/24/2008 – USD/JPY – In the past several days, price action on the USD/JPY daily chart, as shown, has enforced a rather precise resistance level around 108.50-108.60. This level is represented on the accompanying chart by the yellow horizontal line.

If this significant resistance holds within the next several days, in the absence of any fundamentally-driven breakout, traders will be looking for a bearish impending move. This outlook is strengthened by oscillators like the displayed Stochastics, which are emerging down from extremely overbought.

Support to the downside resides first at the green uptrend support line, and then at the red long-term downtrend line, which acted as resistance before price broke out above it earlier this month.

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.

6/23/2008 – EUR/JPY Daily Chart*

(Price on 1st pane, Slow Stochastics on 2nd pane; downtrend line in red; horizontal support/resistance level in yellow; 200-period simple moving average in light blue.)

6/23/2008 – EUR/JPY – After breaking out above a long-term downtrend resistance line in early June, price action on the EUR/JPY daily chart, as shown, is hinting at a weakening of upward momentum. An arc is forming that is confirmed by oscillators like the displayed Stochastics, which are pointing unmistakably down from severely overbought.

Another indication of a possible waning of momentum is the fact that price has hit and bounced down off the -23.6% Fibonacci target around the 168.00 region (the low-to-high retracement span being measured from the swing low on 3/20/2008 to the swing high on 4/23/2008).

In the event of a continued move back down, the next major support to the downside resides around the 165.00 region, a previous support/resistance level. Further down, additional support resides at or near the long-term downtrend line in red, which originally acted as resistance before breakout.

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.

6/20/2008 – GBP/USD 4-Hour Chart*

(Price on 1st pane, Slow Stochastics on 2nd pane; downtrend line in red; horizontal support/resistance level in yellow; 200-period simple moving average in light blue.)

6/20/2008 – GBP/USD – Price action on the GBP/USD pair, the 4-hour chart of which is shown, has just bumped up against a key downtrend resistance line. Although this line has only been touched two previous times, it connects the 27-year high reached in November 2007 to a major intermediate swing-high hit in March of this year.

Therefore it is a relatively significant dynamic level. The first technical expectation at or near any significant support/resistance level is for price to respect the level by bouncing off of it instead of breaking out of it. Therefore, barring any fundamentally-driven breakout, the prevailing technical bias at this juncture is for an impending turn, or at least a consolidation, at or near this resistance.

Oscillators like the displayed Stochastics are lending strength to this bearish outlook, as they are in extremely overbought territory and are beginning to turn down. In the event of an impending move back down, a major support level to the downside resides around the 1.9600 region, a significant previous support/resistance 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.

6/19/2008 – EUR/USD Hourly Chart*

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

6/19/2008 – EUR/USD – The EUR/USD short-term hourly chart, as shown, is mired within a tight horizontal trading consolidation. Support in this range is especially significant, as price has touched and bounced off it many times within the past week.

As of this writing, the morning hours on Thursday in New York saw price hit and bounce up off support once again. This short-term support level resides in the 1.5460 region. Barring any fundamental breakdown, the bias is currently bullish in line with the short-term range trade.

This outlook is supported by oscillators like the displayed Stochastics, which are moving up from extremely oversold. In the event of price making this move back up, the next resistance level to the upside resides in the 1.5585 region.

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.