Weekly Chart Analysis: USD/JPY Large Channel Setup

• USD/JPY continues to trade within a large channel that dominated the price action since middle of 2005
• High probability setup points to a move toward Channel's lower boundary
• Failure analysis points to a break below the Channel's lower boundary

Key Levels - Current Price: 118.33

Level    Type            Significance
135.00   Resistance   Multi-Year High
127.89   Resistance   78.6 Fib of the 135.00-101.78 of the JPY Rally
122.31   Resistance   61.8 Fib of the 135.00-101.78 of the JPY Rally
118.39   Resistance   50.0 Fib of the 135.00-101.78 of the JPY Rally
114.47   Support        38.2 Fib of the 135.00-101.78 of the JPY Rally
109.62   Support        23.6 Fib of the 135.00-101.78 of the JPY Rally
101.78   Support        November 2004 Low

Weekly Chart

Daily Chart I

Daily Chart II

Daily Chart III

Sam Shenker is a Technical Currency Analyst for FXCM.