Chart Of The Day: GBP/JPY

Daily Forex Technicals | Written by FX Solutions | Sep 02 08 14:55 GMT |

9/02/2008 - GBP/JPY - Price on the GBP/JPY daily chart, as shown, bounced precisely up off a significant long-term support level late on Monday. This level resides around 192.60, give or take a few pips. Back in July 2005, this pair reached a swing low of 192.60, and then reached down to 192.57 in March of this year. Just yesterday, price descended quickly and bounced accurately off the 192.61 level. The sheer precision of this support level has been remarkable. As of Tuesday morning, price has corrected substantially to the upside after retreating from support. Any continuation of this correction should hit additional resistance around the 196.80 region, a relatively significant prior support/resistance level. The 192.60 support level to the downside, as mentioned, should continue to act as strong support going forward.

James Chen
Chief Technical Analyst

FX Solutions

IMPORTANT NOTICE: These comments are for information purposes only. Past results are not necessarily indicative of future results. Trading Futures, Options on Futures, and Foreign Exchange involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. The information contained on this email does not constitute a solicitation to buy or sell by FX Solutions,LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law.

(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.)