Key Support Reached on AUD/JPY Daily Chart
05/21/2010 12:01 am EST
Significantly bearish price action on AUD/JPY, a daily chart of which is shown, reached down to key support in the 76.00 price region on Wednesday (5/19/2010) before breaking cleanly down below that level on Thursday (5/20/2010), establishing a new ten-month low.
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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.)
Further bearish price action on Thursday went on to break down tentatively below the 74.00 support level. This all occurs after a sharp drop below a large rising wedge pattern in early May. Currently, bearishness on this currency pair still appears strong, with a key downside support target in the 70.50 price region. Below that key level is a further downside support target around the important 68.00 price region.
By James Chen, chief technical strategist, FXSolutions.com