Click to Enlarge
(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal
support/resistance levels in yellow; uptrend lines in green; downtrend lines in
red; 50-period simple moving average in light blue.)
Price action on EUR/JPY, a daily chart of which is shown, has just made yet another pronounced bounce up off the highly significant 131.00 support level, which has served both as support and resistance on numerous occasions in the past.
Currently, the bounce off this level coincides with a bounce up off a key uptrend support line extending from early March. The upside resistance target to watch for is the 136.00 price region, which should be targeted on any substantial breakout above 134.40, the level of the last swing high.
Downside support continues to reside around the key 131.00 support/resistance level.
By James Chen, Chief Technical Analyst, FX Solutions
