Chart Of The Day: GBP/JPY

7/02/2008 - GBP/JPY - Late last week, price just bounced down off of an extremely significant horizontal support/resistance level on the GBP/JPY daily chart, as shown. This horizontal level, around the 214.00 price region, is represented on the chart by the long yellow line. The line has been respected many times in the past, mostly as resistance, and therefore poses a strong barrier to the upside. A continued move off this resistance would target uptrend support (represented by the green line), which currently represents a price around the 207.00 region.

James Chen
Chief Technical Analyst

FX Solutions

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(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; downtrend lines in red; horizontal support/resistance lines in yellow; 200-period simple moving average in light blue.)