USD/JPY (4-hour chart) as of Thursday (7/14/2011) has entered into a consolidation after having broken down decisively below the key 79.50 previous support region (now resistance). The breakdown below 79.50, which was the region of the significant May low, was also a breakdown below the 161.8% Fibonacci extension of the last major bullish correction, and it also follows on the heels of a breakdown below a key parallel uptrend channel that extends back to the early June low. This series of breakdowns highlights the substantial recent weakness in the pair. Now that 79.50 has been broken down, it has already acted as ... (full story)