Chart Of The Day: NZD/JPY

5/09/2008 - NZD/JPY - After breaking down below a rather well-defined inverted pennant formation on the NZD/JPY daily chart, as shown, price action has just approached a significant long-term uptrend support line. This uptrend line is represented on the chart by the long, green line. With at least four separate touches with reversals since mid-2006, this line represents a significant dynamic support level. Another bounce up off this line, which is the current directional bias, should target resistance at the underside of the broken inverted pennant. A breakdown below the trendline, on the other hand, should target an important support/resistance level in the 75.00 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.)