Price Levels to Watch on USD/JPY Daily Chart

03/31/2010 12:01 am EST

Focus: FOREX

James Chen

Chief Technical Strategist, FX Solutions

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(Price on first pane, Slow Stochastics on second 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.)

Price action on USD/JPY, a daily chart of which is shown, has consolidated for the last several days after having made a strong bullish breakout move last week.

This consolidation range occurs in the price zone between 92.00 and 93.00. A breakout to the upside above this range would lend additional strength to a potential bullish reversal of the long-term downtrend that had been in place until last week’s breakout above the long-standing downtrend resistance line (extending from the April 2009 high).

In the event of this range breakout, immediate upside resistance resides around the 93.75 price region, with further key resistance around 95.75.

By James Chen, chief technical strategist,

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