USD/JPY (4-hour chart) as of Monday (7/11/2011) has broken down decisively below a rising channel that extends back to the early June low. This breakdown occurs after the bottom border of the channel was respected at the very end of last week. A key support target immediately to the downside on this channel breakdown resides around the 79.50 price region, the area of the major low that occurred in early May. To the upside, key resistance within the context of the current bearishness now resides around the 80.50 price region. (Click on chart to enlarge. Forex chart key: price on 1st pane, Stochastics 14,3,3 on 2nd ... (full story)